APRA alleges continuing poor IDII claims experience
Poor claims experience is still a problem with respect to individual disability income insurance (IDII), according to the Australian Prudential Regulation Authority (APRA).
APRA deputy chair, Helen Rowell has told a Parliamentary Committee that while there had been some improvement following the regulator’s intervention, APRA was still seeing poor claims experience.
APRA’s said it had intervened because many IDII products had become commercially unsustainable.
Its intervention saw the major life insurers introduce new, more cost-sustainable products, but many clients have opted to stay with the old, more generous offerings.
Rowell told the House of Representatives Standing Committee on Economics that APRA believed it was a matter for clients whether they moved to the new, more sustainable products or remained with older offerings.
“At the end of the day, it is up to consumers,” she said.
Maybe the poor claims experience with IDII is because the products are poor. I can see people being disgruntled for being knocked back on a claim due to restrictive policy definitions.
I can see APRA continuing to destroy the insurance industry. It’s concerning their level of involvement the government has into the industry..
Whatever drugs Helen is taking would prevent her from getting an underwritten insurance policy.