The Life Code Compliance Committee has reported on a review of the industry’s handling of “longer-running” income protection and total and permanent disability claims.

It found insurers did not always request information early enough, and did not consistently meet communication and review commitments.

“Some claims take longer for legitimate reasons outside an insurer’s control,” compliance committee chair Jan McClelland said. “What insurers can do is ensure their own processes keep claims moving and give customers clear information and support while they wait.

“For someone dealing with illness, injury or loss of income, avoiding unnecessary delays and understanding what happens next can make an important difference.”

The review was flagged in the committee’s 2023-24 annual report and launched last year after an increase in complaints about claim delays and insurer-reported breaches of the code’s claim decision time frames.

The committee examined six insurers, focusing on claims where they had determined the “circumstances beyond our control” code provisions applied. It examined claims data for 2023-24 and looked at how the insurers “managed the parts of those claims that remained within their control. This included whether insurer-controlled processes also contributed to delay and whether insurers met the additional code commitments that apply to delayed claims.”

The compliance committee says some insurers have responded by providing remediation, reporting breaches and strengthening their claims handling processes.

“We welcome the action these insurers have taken through the inquiry,” Ms McClelland said.

“The focus now should be on building on that momentum and embedding lasting improvements across the industry to deliver better outcomes for customers in everyday claims handling.”

See the report here.