85% of bushfire dead had no life cover, says insurer
A lack of life insurance among the 210 victims of Victoria’s Black Saturday bushfires is even worse than the estimated 30% who had no property insurance. Just 30 of the victims – 15% – had life cover.
This estimate, based on “reasonable estimates”, has been provided by Comminsure GM Product Management Clive Levinthal.
He told insuranceNEWS.com.au that based on claims received and Comminsure’s market share, the figure translates to a payout of $5 million to beneficiaries.
“Underinsurance is a major issue and, despite good efforts by the industry, it’s not getting any better,” he said. “It does need some kind of government intervention or support to take the next step.”
Mr Levinthal says an Investment and Financial Services Association (IFSA) campaign to be launched in May will play an important part in communicating the problem of underinsurance to the public, government and other stakeholders.
Other insurers have also reported a low rate of bushfire-related life claims six weeks after the event.
Aviva spokesman Tim Cobb says the company has not received any bushfire-related claims yet, but some people have been given replacement policy documents and some have requested relief on premiums.
And Zurich Australia Communications Manager Sylvia Roder says her company also has not received a life insurance claim.
Tower Australia spokesman Rod Metcalfe says “one or two” claims have been received by his company, and AMP Media Manager Emily Ritchie says “a small number” of claims have been received across income, death and trauma cover.
There is speculation that a number of claims will be paid through life cover attached to superannuation policies which offer a comparatively low payout.
This estimate, based on “reasonable estimates”, has been provided by Comminsure GM Product Management Clive Levinthal.
He told insuranceNEWS.com.au that based on claims received and Comminsure’s market share, the figure translates to a payout of $5 million to beneficiaries.
“Underinsurance is a major issue and, despite good efforts by the industry, it’s not getting any better,” he said. “It does need some kind of government intervention or support to take the next step.”
Mr Levinthal says an Investment and Financial Services Association (IFSA) campaign to be launched in May will play an important part in communicating the problem of underinsurance to the public, government and other stakeholders.
Other insurers have also reported a low rate of bushfire-related life claims six weeks after the event.
Aviva spokesman Tim Cobb says the company has not received any bushfire-related claims yet, but some people have been given replacement policy documents and some have requested relief on premiums.
And Zurich Australia Communications Manager Sylvia Roder says her company also has not received a life insurance claim.
Tower Australia spokesman Rod Metcalfe says “one or two” claims have been received by his company, and AMP Media Manager Emily Ritchie says “a small number” of claims have been received across income, death and trauma cover.
There is speculation that a number of claims will be paid through life cover attached to superannuation policies which offer a comparatively low payout.