ICA counters criticism over expert report standards in insurance
ICA counters criticism over expert report standards in insurance | Insurance Business Australia
Insurance News
ICA counters criticism over expert report standards in insurance
Concerns raised amid ongoing discussions about general insurance code review
Insurance News
By
Roxanne Libatique
The Insurance Council of Australia (ICA) has responded to concerns raised by the Australian Consumers Insurance Lobby (ACIL) about the use of expert reports in the insurance claims process.
Concerns about Expert Report Best Practice Standard
ACIL, a consumer advocacy group, has raised several points about the recently introduced Expert Report Best Practice Standard, claiming it does not fully ensure accuracy or accountability in expert reporting.
ICA addresses ACIL’s claims
In response, an ICA spokesperson outlined the purpose of the Best Practice Standard, which was created to establish consistent practices for insurers when engaging expert professionals such as engineers, builders, and hydrologists.
The spokesperson highlighted that the standard provides clear instructions on how expert reports should be written and formatted, and specifies that experts must rely on verified facts to support their conclusions.
Addressing ACIL’s claim that insurers might unduly influence expert opinions, the ICA said that the standard requires experts to provide objective reports based solely on the evidence presented. Additionally, the standard includes provisions that require experts to include a statement of objectivity, ensuring their opinions remain independent.
The ICA also said that some of ACIL’s concerns misinterpret the role of the standard, which governs how insurers use expert reports, rather than setting professional requirements for the experts themselves, who operate under separate industry regulations.
ACIL’s recommendations to improve Expert Report Best Practice Standard
Despite these assurances, ACIL believes more needs to be done to improve the standards. They have pointed to several areas where they feel the guidelines fall short:
ensuring that all conclusions drawn by experts are well-supported by evidence
requiring that expert reports reference the appropriate industry regulations and building codes
considering certified solutions when reviewing defects
conducting thorough investigations in more complicated claims, with follow-ups when necessary
requiring experts to clearly indicate when findings are inconclusive rather than presenting interpretations that could potentially benefit insurers
ACIL also raised concerns that consumers are often financially disadvantaged when disputing expert reports, and argued that there is an imbalance of power in these situations.
The group is advocating for insurers to offer independent avenues for consumers to challenge the findings of expert reports in disputed claims.
ICA reaffirms commitment to engaging with stakeholders
The ICA indicated its willingness to work with stakeholders, including ACIL, to address these issues.
However, the ICA stressed that any discussions need to be based on a clear understanding of the Expert Report Best Practice Standard and supported by factual evidence.
“If ACIL have evidence that insurers do not appear to have taken any steps to implement the new standard in the less than two months since its release they should provide it, not engage in vague and unsupported assertions,” the ICA spokesperson said.
The introduction of the Expert Report Best Practice Standard is part of broader efforts to improve the transparency and fairness of the insurance claims process.
Related Stories
Keep up with the latest news and events
Join our mailing list, it’s free!
