Westpac has emerged as the life insurer that rejected a sky-high 37 per cent of total and permanent disability claims, putting the big bank in the line of fire from the corporate regulator as it tightens the screws on the scandal-plagued sector.
The bank yesterday pledged to review all the claims it rejected last year after The Weekend Australian forced it to admit it was the insurer behind the 37 per cent rate, which was singled out in a scathing report into the industry released this week by the Australian Securities & Investments Commission. However, the report did not name the company responsible and ASIC has refused to identify the insurer.
Financial Services Minister Kelly O’Dwyer had ordered ASIC’s review earlier this year following a series of media reports alleging misconduct and poor claims handling procedures within the Commonwealth Bank’s life arm, CommInsure.
Fronting a parliamentary committee yesterday, ASIC chairman Greg Medcraft yesterday said there was more work to do in improving standards among life insurers.
ASIC wants to put in place a fully transparent regime on claims handling, both at an industry and individual company level.
In the meantime, however, he declined to reveal to the House of Representatives Economics Committee the companies with the highest rejected claims rates.
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