Make life insurance definitions simpler
Definitions in the life insurance sector need to be made simpler to help both industry workers and customers, experts believe.
Speaking at a panel discussion at the Financial Services Council's (FSC's) Life Insurance Conference, Metlife Insurance chief executive, Deanne Stewart, said there needed to be more standard definitions because it would help collect data in the underwriting and the claims process.
"I think it would really help both consumers and us in terms of understanding the real risks and natures across the industry. We all have different definitions, we all use different medical codes etc... and that not only is confusing for us and for our staff but very confusing from a customer's perspective," she said.
"What I will say in creating standard definitions is possibly we don't do that on our own but we do that with customers in real customer language because if anything last week's events certainly show just how technical that nature is and so much so that a lot of us in the industry don't understand the underlying definitions."
ANZ Australia wealth managing director, Alexis George, agreed but was not sure if standard or minimum definitions were necessary.
"… but absolutely we have to do something about the technical language we use." George said.
"I'd like to think I'm a reasonably intelligent woman but honestly some of these things are well beyond my mental capability and that's a real challenge. If we don't understand it, how can the customer understand it?"
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