CommInsure subject of systemic alarm
CommInsure, the insurance arm of Commonwealth Bank, has paid more than A$2.5 million to 17 eligible customers previously declined trauma claims, but the bank's board said it was "satisfied that there is not a culture of avoiding or wilfully denying claims."CommBank yesterday released a report by Deloitte commissioned following reports by ABC and Fairfax on CommInsure's claims handling practices. The Deloitte report summarised compensation paid as made to "eight customers impacted financially, totalling approximately $320,000."The $2.5 million number appears in a separate "fact sheet" posted by CommInsure and CommBank to their websites."Our work did not identify any systemic issues relating to historically declined claims," Deloitte said.Deloitte said its claims review examined a sample of life insurance claims declined from May 2011 to April 2016, looking at 797 declined claims. It referred 41 claims to CommInsure for a reassessment (itself also scrutinised by Deloitte).The CommInsure board said it also commissioned a series of reviews last year by DLA Piper and Ernst & Young."We have not interviewed the claimants related to [any] claim and have based this assessment on the evidence within their supporting claim file," Deloitte said.Deloitte also set out improvements needed at CommInsure to mitigate friction with the customer experience. "We are in the process of implementing these improvements, which are in addition to the actions already taken last year," CommBank said.