Lack of Information Leading to Claims Scepticism

The lack of information on what occurs during a life insurance claim continues to cause stress for claimants and feeds into ongoing scepticism around life insurance, according to a claims specialist.

AFRM Claims Advocacy (ACA) Chief Executive, Bruno Muraca said recently conducted research carried out by ACA and students at the University of Melbourne found the expectations of people making a life insurance claim were not being well met by insurers.

As such, claimants were seeking assistance in making claims, and information and education around the claims process as it related to them.

The research, carried out by Master’s students at the University with 100 people – including claimants, doctors and advisers, found that providing education around the life insurance claims process could result in better customer experiences, and that claimants valued an advocacy service to support them, and provide information, during the process.

“Generally, the level of education and understanding of life insurance is low but there is an expectation that if someone makes a claim they will receive a benefit,” Muraca said.

“Insurers are well intentioned and they pay legitimate claims…

“The experience of claims, however, is measured by the process of the claim and we found that expectations were not managed well up-front and so the experience for many people is sub-optimal,” he added.

Muraca said not knowing what would take place during the claims process was the key concern for many people, ahead of receiving a benefit – which many considered to be a given, with the research finding the support of claimants through the process, administration, and overall understanding of the claim process was top of mind.

The research also found that claimants preferred websites over an app to provide information and would welcome interactive web chats or peer to peer forums to share information and experiences.

“Insurers are well intentioned and they pay legitimate claims but claimants continue to be of sceptical,” Muraca said.

“Increasing the awareness and education around the importance and value of insurance and providing claimants a helping hand during the process seems to be more important than ever,” he said.