The Australian Prudential Regulation Authority (APRA), along with the Australian Securities and Investments Commission (ASIC), has released its latest Life Insurance Claims and Disputes Statistics report.
The latest data is the fifth publication from the APRA and ASIC that uses the full data set since it was launched in March 2019. It covers a 12-month period from July 01, 2019 to June 30, 2020. It presents the key industry and entity-level claims and disputes outcomes for 20 Australian life insurers writing direct business to make it easier to compare their performance in handling claims and disputes.
ASIC has also updated its online MoneySmart life insurance claims comparison tool with the latest data. It compares insurers across cover types and distribution channels on four metrics: the percentage of claims accepted, the length of time taken to pay claims, the number of disputes, and policy cancellation fees.
Death took top spot in admittance rate and claims paid ratio by cover type and channel for the 12 months to June 2020 – with claims paid ratios of 42% individual advised, 40% individual non-advised, 85% group super, and 47% group ordinary.
It was followed by total and permanent disability insurance (TPD), trauma, disability income insurance (DII), consumer credit insurance (CCI), funeral, and accident.