The life industry is facing another Australian Securities and Investments Commission (ASIC) review in light of the CommInsure allegations.

A spokesman has confirmed to insuranceNEWS.com.au Finance Minister Kelly O’Dwyer’s office had contacted ASIC to look into the CommInsure events.

“The minister’s office has asked us to look at some aspects of CommInsure and see if there are any systemic issues,” he said.

“This will not be into the whole industry but CommInsure will be the first and we will see how the industry is structured.”

It is understood this review will again look at commissions and if they influenced claims.

There has been very little detail revealed in the media articles on how the insurance was actually sold, whether direct by the bank, through an adviser or as part of a group life policy.

ASIC is due to appear before the Parliamentary Joint Committee on Financial Services on Wednesday night and more details of the regulator’s inquiry might be available then.

Meanwhile, CommInsure has upgraded some of its products including definitions.

CommInsure Chairman Geoff Austin says it has reviewed current initiatives and agreed to implement product upgrades.

Its heart attack and severe rheumatoid arthritis definitions in the trauma product will be upgraded and a revised product disclosure statement will be released at the end of this month.

These revised definition will be backdated and apply for all claim events from May 2014 onwards.

Mr Austin says CommInsure has also committed to a more regular review of the life insurance offering to ensure definitions reflect evolving medical standards and practices.

The life insurer will also introduce an additional layer of independence to its claims assessment and decision-making processes.

Where CommInsure’s claims committee recommends a complex claim be declined, it will be referred to an independent review panel.

The panel will consist of the MD of CommInsure and at least two independent industry experts, who will be announced within the next month.

A sub-committee of the CommInsure board will monitor the outcomes of the panel. The board will also appoint an independent expert to oversee a claims review program focusing on declined claims.

“The concerns raised in the recent cases reported are not a reflection of the values of our people or our business,” Mr Austin said.

“We expect the highest ethical standards of all our employees and will continue to ensure that the policies and processes within the business support these standards.”