Inadequacies admitted over flood insurance claim



ONE of Australia’s major insurers admitted inadequacies in its handling of a Brisbane woman’s flood claim during questioning at Queensland’s floods inquiry.


In a case that highlighted flaws in the processing of flood claims, CGU executives accepted that West End property owner Sally Doyle received insufficient information about case and was mislead during the process.

CGU chief executive Peter Harmer personally intervened in Ms Doyle’s case, erroneously telling her over the phone he had recordings of her calls to the company.

He told the public hearing he became involved to get a better understanding of the process from customers’ perspective.

“I wanted to get a first-hand understanding from a customer who was clearly aggrieved,” he said.

Mr Harmer was the first of a string of insurance executives to front the public hearings, following months of public criticism over company delays and differing flood definitions.

Executives from Allianz and NRMA are also expected to give evidence.

Yesterday Mr Harmer said CGU processes had changed following Queensland’s extraordinary summer of floods, which cost the insurance industry $2.5 billion.

He said customer service representatives now “proactively” offered site assessors in the event of a disputed claim after he learned the previous procedures were not effective enough.

“People in times of trauma don’t always absorb the message that is being conveyed,” he said. “We need to be much more explicit.”

On Wednesday Ms Doyle told the hearings she believed her claim had been rejected following standard questioning within weeks of the January 12-13 flood, without receiving an individual assessment.

Yesterday Mr Harmer said the company had sought further information and her claim was only formally denied on April 27.

National claims manager James Merchant yesterday said customer service operators used a series of questions before determining if an assessor was required. ‘We had to balance a lot of competing resources,” he said.

He said CGU had commissioned 126 site-specific reports – the company had 5500 claims including home, contents and vehicles – and said it was “unfortunate language” that a staffer said Ms Doyle had “a lot more than anyone else will get”.

“We didn’t meet her expectations and for that I’m very sorry,” he said.

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