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Has lawyer advertising lost its super punch?
The continuing involvement of lawyers in life/risk claims may be over-stated, according to new research conducted by Pacific Life Re and plaintiff law firm, Maurice Blackburn lawyers.
That research measured the level of advertising against the occurrence of superannuation and insurance claims and found that claims experience had spiked in 2013 but had largely levelled off and fallen in subsequent years.
The law firm and Pacific Life Re made the research available to Super Review following reports that the Australian Prudential Regulation Authority (APRA) was concerned about the level of lawyer involvement in insurance claims.
Maurice Blackburn’s Josh Mennen said that the research had been aimed at better understanding of the life/risk environment and acknowledged that his firm had ramped up advertising in 2013 and this had coincided with a spike in claims activity.
“We saw in 2013 a spike in post-GFC life insurance claims through people’s super funds and these were legacy claims made under older policies which were no longer in place,” he said. “We were interested to know what influence we had on that spike given that we engaged in significant TV and other advertising.”
“What this research shows is that the increase in the claims trajectory at that time has not continued. It was a discreet claims lump tied to the unique circumstances of the time,” Mennen said.
Both Mennen and Pacific Life Re’s Ilan Leas said they were hopeful the research would provide some clarity to the industry and the ability to plan.
“We hope the research will prove useful to stakeholders in pricing life insurance and put downward pressure on premiums and preserve the purpose of superannuation to ensure sufficient account balance for retirement,” Mennen said.
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