FSC calls for statute of limitations on TPD claims


The Financial Services Council (FSC) has advocated that the Government impose a statute of limitations on group insurance disability claims to help insurers better manage pricing.
Opening the FSC's Life Insurance Conference in Sydney today, CEO John Brogden also said his organisation believed there should be changes made to the Private Health Insurance Act to enable insurers to fund medical treatment for claimants to improve return-to-work rates.
The FSC chief executive's comments on a statute of limitations has come in the wake of hefty premium rises being imposed on superannuation funds for group insurance, driven in large measure by higher claims experienced around total and permanent disability (TPD).
Brogden said a ‘statute of limitations' on group insurance disability claims would help the industry manage pricing with more certainty and ensure the long-term sustainability of premiums.
On the question of changes to the Private Health Insurance Act, he said it represented an important measure which had the capacity to deliver better outcomes for claimants and would help them manage increasing claims costs for insurers.
"It will also help to improve the welfare of individuals by allowing them to remain engaged in the workforce and ultimately contribute to economic growth through higher labour force participation," he said.
Brogden claimed the FSC was leading the response to non-regulatory issues that must be dealt with by the industry, including improving the quality and consistency of data shared by the industry, particularly for group insurance; considering an industry fraud bureau similar to that used by the general insurance industry and in other countries such as Canada and South Korea; and establishing a medical impairment bureau.
Recommended for you
AFCA has confirmed United Global Capital’s membership of the body will not be extended to accept further complaints, avoiding a repeat of the Dixon Advisory scenario.
Three of Australia’s largest financial advice groups have shared their thoughts with Money Management on whether they would include crypto on their approved product lists.
Shadow treasurer Angus Taylor has vowed to introduce a bill to legislate a raft of financial services reforms if the Coalition is elected.
Money Management examines the share price of financial advice licensees over one year to 31 March, with M&A actions in the final quarter having a positive effect for two licensees.