‘Value of Protection – Creating an advocate for life’, 2013, the AFA, BT Financial Group and the Beddoes Institute

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The “Value of Protection – Creating an advocate for life” white paper provides new guidelines for optimising claims outcomes for both consumers and insurers and raising the standard of claims management in Australia.  It focuses on consumers’ perceptions of the life insurance industry with regard to Income Protection insurance and the expected experience when lodging a claim. These perceptions have then been road-tested against actual claims experiences of consumers who received early engagement and enhanced support from their insurer. Analysis of the perception-experience gap highlights the benefits for insurers and consumers of adopting a holistic and consumer-centric approach to claims management. Finally, a needs analysis has confirmed the seven critical needs that consumers have along the claims journey. These needs provide insurers and advisers with a consumer-focused ‘best practice’ framework that can be used to evaluate current claims management approaches and develop new and improved models of service into the future.


Table of Contents

About the Authors 4
Executive Summary 5
Method 8
Consumer Views of Protection 10
Insurance Industry Perceptions 10
Life Insurance Industry Perceptions 12
The Underinsurance Problem 13
The Value of Protection 18
Perceptions of the Claims Experience 20
The Reality of Protection 25
Claims Experience Case Studies 25
Best Practice in Claims Management 31
Consumer Perceptions of Claims Needs 31
Actual Needs of Claimants 32
A Consumer-Focused Best Practice Framework 33
Industry Performance 34
Implications for the Industry 37