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APRA details life claims

The Australian Prudential Regulation Authority has released life claims statistics for last year.

For individual advised products, death claims received totalled 3419; total and permanent disability (TPD) 2995; trauma 4979; disability income insurance (DII) 9474; and accident 45. Advised business refers to the sale of individual insurance through personal advice.

For individual non-advised products, death claims received totalled 1638; TPD 124; trauma 1238; DII 2003; consumer credit insurance (CCI) 1674; funeral 15,137; and accident 2660. Non-advised business refers to the sale of individual insurance without personal advice.

The figures are based on data from 17 life insurers writing direct business in Australia, and also covers group insurance products.

DII has a claims paid ratio of 60% to 134% across four distribution channels: individual-advised, individual non-advised, group super and group ordinary. TPD has a claims paid ratio of 35% to 109% and death 41% to 75%.

In the individual-advised channel, death disputes lodged totalled 215; TPD 858; trauma 370; DII 2568; and accident six.

Individual non-advised death disputes totalled 133; TPD 15; trauma 52; DII 384; CCI 94; funeral 397; and accident 97.

In group super, there were 132 death disputes; 2123 TPD disputes; and 2634 DII disputes. Within group ordinary, TPD disputes lodged totalled 11; trauma six; and DII 176.

The regulator says claims admittance rates across all distribution channels have remained relatively stable in the past few years.

Claims paid ratios for group products have picked up recently and ratios for individual products have remained relatively stable.

Click here for more from the statistics.