29 March 2019
MLC Life Insurance welcomes the release of ASIC and APRA claims data reports covering aspects of claims handling and disputes within the Australian life insurance sector. The reports are an important step forward for the industry. They represent the first comprehensive effort to ensure there is credible, reliable and comparable claims and dispute data for customers and policymakers to assess when considering life insurance.
For MLC Life Insurance, the reports indicate that we are living up to our ambition of being Australia’s leading and most trusted life insurer by paying claims quickly and with a minimum of fuss.
Specifically, between 1 July 2017 to 30 June 2018, MLC Life Insurance:
- Admitted 91.4% of all claims, in line with the industry average, and admitted 94% of all retail insurance claims;
- Has the fastest claims processing times for retail IP. On average, we process a claim in just over a month (1.1 months);
- Is the second fastest in the industry for processing a group TPD claim, doing so in 3.8 months on average. This is quicker than the industry average of 5.5 months;
- Is ahead of the industry average in our speed to process all types of retail insurance claims; and
- Has claims dispute rates that are consistent with the industry average.
Over the last two years MLC Life Insurance has significantly improved the claims experience for our customers by making our processes easier and reducing unnecessary paperwork. Completed in 2017, our claims transformation program included significant investment in improved systems, resourcing, training and governance processes.
Specifically, we have made four changes to make the claims process better and easier for customers making a claim:
- Customers have a dedicated contact person to manage their claim;
- Over half of our claims team has an allied health background, improving engagement with customers and their treating doctor;
- Our partnership with software company ClaimVantage removes the need for onerous paper-based claim forms and instead replaces them with a personalised conversation which results in a much quicker claim; and\
- Our awarding-winning pre-claim engagement service enables customers to return to wellness and work faster.
MLC Life Insurance has been providing life insurance for 133 years and we welcome scrutiny of us and our industry to foster understanding and drive improvements. This focus is fundamental to being trusted by our customers as we make valuable promises to them and their families.
We provide more than 1.5 million Australians with the assurance that they and their loved ones will be supported when they need it most. In 2018 alone we paid out more than $1billion in claims. Our industry paid out more than $8 billion .
While there is more to do, MLC Life Insurance is proud of the support we provide to our customers in their time of need. We remain committed to investing in our people, processes and systems to improve the way we handle claims.