Industry lawyer defends insurer integrity

Insurance companies are rarely cast as the heroes in any situation – in fact, it’s fair to say they’re usually first in the firing line when things don’t go exactly as planned.

However, one veteran lawyer has spoken out about the widespread perception, saying she doesn’t believe it’s fair that insurance firms get such bad press.

Speaking to Insurance Business, newly-appointed Mills Oakley partner Nieva Connell said the industry’s less-than-stellar reputation is not only inaccurate – it’s also causing widespread issues.

“The most pressing challenge currently facing the Australian insurance space is not a legal challenge, it is a perception challenge,” said Melbourne-based Connell.

Connell, who has previously picked up the Law Institute of Victoria’s Pro Bono Lawyer of the Year Award, pointed to the Royal Commission as a key driver behind the negative perception which insurance just can’t seem to shake.

“The effect of the Hayne Royal Commission has been to tarnish the insurance industry as a whole and to create the unfortunate and, in my experience unjustified, perception that insurers lack integrity,” she said.

“While I accept the findings of the Royal Commission, my personal experience in dealing over a long period with many insurance companies is that they do not try to ‘weasel out’ of claims,” she continued. “They act with honesty and integrity.”

Connell, who has worked closely with both insurers and insureds for the past 20 years, also says she’s witnessed multiple occasions in which an insurer has upheld more than is legally required of them.

“I have, at times, advised insurance clients that a claim could be denied under the terms of the insurance policy, but they have decided that the ‘spirit’ of the policy should be applied instead and have paid out the claims,” she said. “Those sorts of good news stories never get a run in the mainstream media.”