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New mandatory reporting requirements on life insurance claims

Ann-Marie_ColemanThe Australian Prudential Regulation Authority (APRA) has released the Life Insurance Reporting Standard LRS 750 Claims and Disputes with the aim of enhancing the consistency and quality of life insurance data. The data will be published through a program established jointly last year by APRA and the Australian Securities and Investments Commission (ASIC).

With the introduction of the new reporting standard, it is now mandatory for life insurers to report data on claims and disputes. APRA and ASIC have published data in the past on life insurance and claims, however, participation was not mandatory an insurers did not interpret the reporting requirements consistently. It is hoped that the new reporting standard delivers enhanced transparency and accountability which will assist consumers in making informed decisions about their life insurance. It is also hoped that the new standard will help regulators to identify emerging problems, assess product value and take action to improve consumer outcomes.

The first release of public data collected under the new reporting standard, featuring insurer-level data, is due in early 2019, with ongoing publications to be issued every six months. Life insurers will be required to provide the information required by the standard for the periods 1 July 2017 to 31 December 2017 and 1 January 2018 to 30 June 2018 by 28 December 2018.

More information can be found here