Bushfire insurance claims a slow burn
The death toll from Febru ary’s Victorian bushfires may exceed 200 and the Insurance Council of Aus tralia may have estimated the total insurance cost as exceeding $1 billion but, thus far, the resultant risk insurance claims have been a trickle.
While most risk compa nies were unwilling to detail the actual number of claims for life, trauma and income protection, Money Manage ment understands the num bers are in single digits, but the issue is being complicat ed for the insurers by the widespread loss of docu mentation and the time taken to issue death certifi cates.
Unofficially, life insurers are expecting the final num ber of claims to highlight the underinsurance problem in Australia and reflect the Investment and Financial Services Association’s (IFSA’s) figure of only 35 per cent of the Australian popu lation having risk insurance.
As well, many claims will be paid through superannu ation group life policies, which will mean the average payout figures will be low, according to some life indus try experts.
AIG Life general manag er, life, Damien Green con firmed the insurer had received some claims with out specifying numbers.
AMP director, personal wealth protection, Ken Lockery confirmed the com pany had received claims across all sectors of risk insurance.
A Tower spokesman said the company had received one retail life claim and was expecting further claims to be made through group life policies with superannuation funds.
AXA said it had a small number of clients affected by the fires and there had “only been a handful of claims”.
Aviva general manager, marketing, Tim Cobb said the company had not received any claims to date while Zurich life risk opera tions manager Chris Ruther ford said his company was also yet to receive claims.
Recommended for you
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
