APRA and ASIC have launched the pilot phase of a project to improve public reporting of life insurance claims performance across the industry.
The joint initiative aims to collect and publish life insurance claims data on a per insurer basis, and include data on claims handling time frames and dispute levels that will allow for meaningful comparisons of insurer performance and more effectively inform consumers, APRA said in a statement.
The project also includes the release of a discussion paper, Towards a transparent public reporting regime for life insurance claims information, which sets out the objectives and rationale of the data collection, and the process to be undertaken.
The project launch follows the findings of ASIC’s Report 498 and announcements by ASIC and APRA in October 2016 that they would start working together on new claims data collection.
APRA member Geoff Summerhayes said the pilot phase of the new data collection is an important milestone to establishing a consistent public reporting regime for claims data and claims outcomes.
"Our intention is to collect and publish credible, reliable and comparable data on an insurer-level basis, Mr Summerhayes said.
“Such information will enable consumers to better understand insurance products and more confidently engage with insurers.”
For the pilot phase, life insurers are requested to complete a data reporting template by 30 June, and submissions regarding the discussion paper are welcome by 11 August, APRA said.