TPD Severity is a new add-on from Acenda that allows advisers to tailor their clients’ existing TPD policy to suit their needs. The option uses established medical impairment benchmarks to assess the degree and permanence of disability, for both physical and mental health conditions, bringing greater objectivity and consistency to the claims process.
Gerard Kerr, Acenda’s Chief Executive, Individual Insurance, said the option has been designed with help from advisers and “…reflects the evolving needs of Australians, including a need for greater stability in the cost of TPD insurance”.
“The way we work, recover, and diagnose medical conditions have evolved significantly since TPD insurance was first established,” he said.
“We’ve worked closely with advisers to design a solution that reflects the realities of modern medicine and employment.
“Advisers can tailor cover to their clients’ individual needs by mixing and matching the levels of TPD Severity with the customer’s preferred level of other TPD cover.”
Between 2018 and 2023, Acenda reported a 166% increase in retail TPD claims for musculoskeletal conditions and a 171% increase in retail TPD claims for mental illness.
…TPD Severity is a modern solution to a modern problem…
“This consistent rise in claims over recent years has also resulted in higher TPD premiums across the industry, making cover increasingly unaffordable for many Australians and further threatening ongoing access to this valuable disability cover,” said Kerr.
“TPD Severity is a modern solution to a modern problem, delivering customers more affordable premiums while still offering access to meaningful protection that gives Australians the confidence to take life on.”
Above: A TPD Severity video produced by Acenda.
This is illogical. There is already a 'severity' clause in TPD. Its called 'Total'! Just start there and many problems would be solved. This product is not a Temu Trauma product.
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