Call for Life Assurers to pay out more quickly

Friday, July 30, 2010

A spokesperson from insurance giant Munich Re has presented a case to life assurers, calling for death claims to be settled much more quickly than they are at present. Andy Milburn has suggested that life insurance is a very straightforward product, and the only criteria to be fulfilled for a payout is whether or not the person is dead or not.

The comments are an attempt to shake up the insurance industry and regain trust in Life Insurance, in order to prevent further drops in sales figures within the industry. Milburn is also calling for enhanced customer service and improved product innovations. People take out life cover to support their family in the event of their death, and help with funeral costs, mortgage payments and income for children. Because of this, it is imperative that Life Insurance companies pay claims promptly, to prevent financial burdens on the family left behind.

Unlike other forms of insurance which may have exceedingly complex criteria for establishing the authenticity of claims, Life Insurance is obviously not complex to settle. Because of this, Milburn is calling for insurers to be more sensitive to the needs of their customers and act swiftly in the event of the insured’s death.

Munich Re are practicing what they preach. As a reinsurance company, they operate internationally and apply a range of disciplines to produce concepts that make tomorrow’s world insurable. Their state that their recipe for success is to anticipate risks and deliver needs-based solutions, that provide the impetus for profitable, long-term growth.

In the financial year 2009, the Munich Re Group recorded a clear profit of €2.56bn. They invest heavily in order to maintain their competitive position, and employ 13,300 staff. With premium income of around €25bn, Munich Re are one of the world’s leading reinsurers.