The Commonwealth Bank boss is "saddened and disappointed" by how the
cases of some life insurance customers have been handled, admitting the
bank focused on the process over the people.
Chief executive Ian
Narev's apology comes after a joint Fairfax Media and Four Corners
investigation revealed the big bank had been using an outdated and, when
used in isolation, unfair method to define heart attacks.
'We focused too much on process rather than people': Ian Narev. Photo: Brendon Thorne
The media investigation understands that the Commonwealth
Bank was aware of this, even as it continued to use the method to assess
claims on heart attacks – which account for one-fifth of CommInsure's
trauma claims.
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As a result, legitimate heart attack victims might have been unfairly refused payouts.
Mr
Narev admitted on Saturday the bank had failed to meet its
responsibility to those customers identified in the media investigation.
"Life
insurance is there to support customers and their families at times of
great need and distress. Insurance providers have a responsibility to
deal with claims as sensitively, as quickly, and as fairly as possible,"
he said in a statement.
"It is clear that in relation to the
customers who have been the subject of recent media enquiries, we
failed to meet that responsibility."
"Saddened and
disappointed" at the handling of these cases, Mr Narev said he would
write to the customers to apologise with an offer to meet face to face.
"In these cases we focused too much on process rather than people." he said.
"By their nature, life insurance policies can be complex.
"Claims
processes involve the review and assessment of detailed documentation.
Whilst thoroughness is important for the integrity of the system, this
must be balanced by customer need and dignity.
"Here, we got that balance wrong."
In
an interview on Friday, Mr Narev admitted that in some categories of
the Commonwealth Bank's trauma policy definitions had not been updated
to reflect medical practice.
Following the investigation's
publication on Saturday, Mr Narev conceded that among CommInsure's four
million customers, there may be other similar cases.
Fairfax Media
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