June 6, 2017
The life insurance sector has continued to reach record levels of claims being paid with new data revealing claims payments during 2016 passed the $9 billion mark for the first time.
This level exceeds the $6 billion paid in 2015 and is the 11th consecutive year that claims payments have climbed, according to online life insurance resource provider The Risk Store.
The Risk Store Managing Director, Pete Wincott, said the daily claim amount paid was more than $26 million and the number of claimants at 108,000 was also a record, increasing by nearly 20,000 over the 2015 figure of 89,300 claimants.
Wincott said the figures, released as part of The Risk Store’s annual Australian life insurance industry claims paid statistics, highlighted the importance life insurance played in protecting Australian consumers and contributing to society.
…the daily claim amount paid was more than $26 million and the number of claimants at 108,000 was also a record…
“Despite the continuing mainstream media scrutiny of the Australian life industry’s claims handling, claims payments during 2016 exceeded the previous year significantly, with a total of over $9 billion dollars,” Wincott said.
“A record number of claimants received benefits and this is from only the key mainstream insurers. The full total including smaller niche players is therefore even more in both dollars and numbers,” he added.
Wincott said the statistics have also recorded for the first time the largest benefit amount paid for each product type and the oldest and youngest claimant paid for each product type, with the latter being a two year old.
“We hope these statistics provide encouragement to those people working within the industry, that their role does in the end make a significant difference to so many people’s lives, directly and indirectly,” Wincott said.