ASIC is calling on life insurers to review the accuracy of their systems and controls for claims calculations and payments. This follows identification of system failures resulting in the incorrect application of consumer price indexation (CPI) to life insurance policy benefits and other benefit payment errors.
ASIC has received breach reports from seven life insurers for the miscalculation of life insurance benefits. The errors resulted in the affected customers being either under or overpaid on their claims.
The seven insurers have implemented system fixes over the last three years. They have each commenced, and six have completed, customer remediation programs.
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