In a piece of research described by both regulators as "world-leading," APRA and ASIC have jointly outlined the life insurance claims and disputes statistics for the 12-month period from 1 January 2018 to 31 December 2018.
The statistics were derived from entity-level claims and disputes data for APRA-licensed life insurers, excluding reinsurers.
In detail, the findings are, by relevant types of cover:
The claims paid ratio (that is, the dollar amount of claims paid out as a percentage of annual premiums receivable) was also generally higher for advised claimants – 39% for death cover versus 32% for non-advised claimants, 45% for TPD cover versus 28% for non-advised claimants and 62% for trauma cover versus 40% of non-advised claimants.
In general, the research reflects that advised claimants are altogether better off at claim time than their non-advised counterparts. ASIC’s Life insurance claims comparison tool is a valuable means of demonstrating these findings out in the community.
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