Aussie life insurance providers under scrutiny
As the parliamentary inquiry into life insurance continues, the practices of providers in this beleaguered industry have come under increasing scrutiny.
Fairfax journalist Jessica Irvine highlighted many of these concerns in a commentary piece published by Fairfax Media this morning, writing, “Australians now fork out more than $44 billion a year in premiums for life insurance policies, including for death, total and permanent disability and income protection. The scandal is – sorry – one of the scandals of life insurance is that many Aussies don't even know they're doing it.”
Ms Irvine was also highly critical of the lengths life insurance providers will take, to avoid paying claims, writing, “Life insurance claims have increased markedly in the past half decade, partly because many Aussies are waking up to the fact they have cover. In response, many life insurers have become explicitly focused on trying to reduce claim payouts. Indeed, insurance companies are even paying money to super funds whose members have low claim rates.”
Ms Irvine concludes her piece with a scathing attack: “Life insurance now appears little more than a costly gamble on protection that for many will never pay off, when it should be an important protection for the most vulnerable period of our lives… The committee will report its recommendations by June 30. It can't come soon enough.”
What’s your opinion on the life insurance industry?
Related links:
How to guard yourself against insurance fraud
How to cope if you owe an insurer money
Resolving disputes with insurance brokers