Risk Regulatory Update

ASIC wants more done to improve TPD insurance

The Australian Securities and Investments Commission (ASIC) says progress has been made on its 2019 review of total and permanent disability (TPD) insurance, but more needs to be done.

ASIC identified possible harms to consumers and gaps in the safety net two years ago, and recently provided an update on how nine insurers were tackling those concerns.

All insurers have started reviewing restrictive TPD definitions, are working with trustees for insurance in superannuation, and have made improvements to claims handling practices. Improvements were identified regarding better ways to use and store data for use later, more investment is required in data systems, and improvements must be made in claims handling problems.