Combating mental health claims
Ginger Group and Special Risk Insurance are to examine establishing a team of clinical nurses to support insurance brokers and clients struggling with insurers over complex health, occupation and lifestyle claims.
Tuesday, August 9th 2011, 10:00AM
by Benn Bathgate
The move comes after Ginger Group highlighted the fact the average New Zealander is now more likely than ever to have their claim or application rejected by an insurance company on mental health grounds.
Special Risk Insurance founder and Ginger Group member Brian Klee said New Zealanders should seek medical advice when lodging insurance applications or claims, or face the risk of rejection.
"Compared to three years ago, insurance companies are now far more likely to apply a mental health exclusion to the average person, or use it as grounds to decline a claim," he said.
"The insurance industry appears a bit stymied, or dare I say it even panicked, in the areas of mental health."
He also predicted a rise in mental health related claims from Christchurch; said the drug P was increasingly an issue and gave an example of a claim being rejected for non-disclosure because the client has used St John's Wort for stress.
"There were other reasons, but that was one used against the claim being accepted," he said.
Klee recently returned from a trip to the United States which left him even more convinced of the need for clinical involvement in the application and claims process.
He also cited UK research which found the average person is more likely to share personal details with a clinical nurse rather than with their broker.
"This means the average person is less likely to be rejected at a later date for non-disclosure, and the insurers like it because the reinsurer gives them a discounted rate as a result of this quality process."
Ginger Group chief executive David Whyte said the use of clinical nurses was a trend internationally, but would be a first for New Zealand.
Benn Bathgate is a business reporter for ASSET and Good Returns, email story ideas to benn@goodreturns.co.nz
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