APRA has released its Life Insurance Claims and Disputes data for the 2018 calendar year, in which the value of advised life insurance claims is evident, particularly for TPD claims.
In what the regulator positions as the product of a ‘world-leading joint project’ between itself and ASIC, this claims data is intended by APRA to make it easier for consumers to compare life insurers’ performance in handling claims and disputes.
One of the headline tables in the 2018 data is claims admittance rates across Death, TPD, Trauma and DII. The data reinforces the value of advisers at claim time, particularly when it comes to TPD claims, where a significant differential exists in admittance rates for Individual Advised compared with Individual Non-Advised claims:
This data shows the vast majority of all claims are admitted, while the following table summarises the main reasons provided by life insurers for declining a claim, where the main reason is where the claim contractual definition has not been met:
Company-level claims data is also available via ASIC’s MoneySmart Life insurance claims comparison tool, which has been updated with the latest data. This online tool compares insurers across cover types and distribution channels on four metrics:
- Percentage of claims accepted
- Length of time taken to pay claims
- Number of disputes
- Policy cancellation rates
An example of one of the many claims comparison tables available on the MoneySmart website is provided below:
These tables make for interesting reading, particularly when comparing the sometimes significant difference in the average time taken to pay claims. Click here to access company-level claims data comparisons available on ASIC’s MoneySmart website.
This is the second publication of Australian life insurance claims data following the launch of this service earlier this year (see: Insurers Identified in ‘World-First’ Claims Data Release).