Curium’s take on the latest GI CGC Annual Report – A wake-up call for the Insurance Industry

In our continuous effort to revolutionize how insurance claims and complaints are managed in Australia, we at Curium closely monitor industry developments. The General Insurance Code Governance Committee’s (GI CGC) annual report for the 2022-23 financial year offers invaluable insights, which we believe are crucial for shaping the future of insurance services.

Alarming Trends in Breach Reporting

The report indicates a concerning trend in the industry. With 58,104 breaches self-reported and 123 significant breaches identified, it’s clear that the industry faces serious challenges in compliance and service quality. What’s more alarming is the delay in reporting these incidents, with an average of 197 days to report significant breaches after being identified.

The Role of External Factors in Insurance Compliance

The distribution of individual significant breaches across different insurance classes, like motor, home building, and travel, reveals the diverse nature of compliance issues. Claims handling timeliness and complaints handling remain as top issues, pointing towards systemic problems in the industry.

Remediation Efforts: A Glimpse of Hope

The report suggests that 36% of the remediation activities involved improving processes and procedures. However, a significant part of the solution still relies on human intervention, such as remedial training and increasing staff resources. This underscores the need for a cultural shift in the industry towards better compliance and customer service.

Curium’s Analysis: The Path Forward
  1. Prompt Reporting: The delay in breach reporting is a red flag. There’s a need for more efficient internal mechanisms to identify and report breaches swiftly.
  2. Potential Non-Compliance: The fact that 25 subscribers reported no significant breaches raises questions about the robustness of their compliance measures.
  3. Human Factor in Remediation: The reliance on human-centric remediation strategies indicates a deeper issue related to training and corporate culture.
  4. Claims Denial Concerns: With 50% of claim denials being overturned at the internal dispute resolution stage, the industry must reevaluate its claim assessment processes.
  5. Monitoring of External Parties: Strengthening oversight on external experts and partners is crucial for maintaining compliance and service quality.
Curium’s Commitment to Innovation

At Curium, we believe that technology can play a pivotal role in addressing these issues. Our software is designed not just to manage claims and complaints but also to foster a culture of prompt reporting and efficient resolution. By integrating advanced analytics and automated processes, we aim to support the insurance industry in improving compliance, enhancing customer satisfaction, and ultimately revolutionizing the way insurance services are delivered in Australia.

Join us in this journey towards a more responsive and responsible insurance sector.