AIA Australia has called for an industry-funded independent service to help consumers, particularly superannuation fund members, lodge life insurance claims.

In a submission to the Parliamentary Joint Committee on Corporations and Financial Services’ life insurance inquiry, AIA says despite industry making claims simpler, it is still a stressful process.

“We recognise many find the process complex and overwhelming,” it says.

“Many individuals seek assistance from third parties at claim time to alleviate this stress.

“AIA and the [life] industry have noticed that members are increasingly turning to legal representation at the initial stages of lodging a claim.”

The insurer says in 2015 92% of total and permanent disability claims had legal representation at the point of lodgement. These claims took twice as long to resolve as others.

AIA argues the proposed claims service would complement internal and external dispute resolution processes.

“We also recognise certain individuals may have unique needs, such as those for whom English is a second language and the elderly.

“The service would be designed to meet these needs.”

AIA accepts legal representation is required in some instances, but the trend is eroding payments to consumers in a growing number of cases.

“We envisage this [proposed] service will be open to all potential claimants, but it may be particularly useful for those insured using direct channels.

“They do not have the advocacy services provided by super trustees, or financial advisers, to assist them in the same manner as the other channels.”

AIA envisages industry engaging with regulators and consumer advocate groups to develop publications detailing what to expect in the claims process and who to contact for help.