Life insurance claims statistics for 2021 released by APRA show an overall improvement in claims acceptance rates compared to 2020.
The average claims acceptance rates for policies distributed by life insurance advisers/brokers have increased year on year, as below:
Claims acceptance rates
| Cover Type | 2020 (%) | 2021 (%) | Improvement (%) |
| Death/Life | 96.4 | 97.1 | +0.7 |
| TPD | 81.5 | 82.5 | +1.0 |
| Trauma | 85.7 | 86.8 | +1.1 |
| Income Protection | 94.0 | 95.0 | +1.0 |
However, the news on claim processing times is not as good. The average time to process claims has not improved for life insurance claims and for the other cover types the processing time has increased:
Average Claims Processing Time
| Cover Type | 2020 (mths) | 2021 (mths) | Change (mths) |
| Death/Life | 1.5 | 1.5 | Nil |
| TPD | 6.8 | 7.4 | +0.6 |
| Trauma | 1.6 | 1.7 | +0.1 |
| Income Protection | 1.5 | 1.6 | +0.1 |
The 2021 data again confirmed that there is a difference in claims performance depending upon distribution channel.
Policies purchased direct from the insurer had lower claims acceptance rates and longer processing times than so called “retail” policies distributed by life insurance advisers/brokers as shown in the table below.
Claims Performance – Retail versus Direct Policies (2021)
| Life Insurance | Retail | Direct |
| Average Claims Acceptance | 97.1% | 89.7% |
| Average Claims Processing Time | 1.5 months | 2.8 months |
| Income Protection | Retail | Direct |
| Average Claims Acceptance | 95.0% | 90.8% |
| Average Claims Processing Time | 1.6 months | 2.0 months |
Marketing methods and policy exclusions have been identified by the Royal Commission and ASIC as potential reasons for the difference in claims acceptance rates.
Another factor identified by APRA is the level of support provided at claim time. Retail policyholders will generally receive assistance from their life insurance adviser or broker when lodging their claim.
However policyholders who have purchased direct from the insurer will have to deal with the insurer’s claims department on their own, without the help of an experienced industry professional.
As in previous years, Insurance Watch has used the latest APRA/ASIC statistics (for adviser/broker distributed policies only) to determine which three insurers were the best and fastest at paying claims in 2021.
Top Claims Paying Insurance Companies 2021:
1. Westpac/BT
2. MLC
3. Resolution Life/AMP
Fastest Claims Paying Insurance Companies 2021:
1. TAL
2. Resolution Life/AMP
3. CommInsure
The results for the individual companies are shown below:
LIFE INSURANCE CLAIMS PERFORMANCE IN 2021
| Insurance Company | Life Insurance Claims Accepted % | Average Claim Time months |
| AIA | 96.6 | 1.7 |
| Resolution Life/AMP | 97.1 | 0.8 |
| NobleOak/NEOS | N/A | N/A |
| ClearView | N/A | N/A |
| CommInsure | 97.0 | 1.2 |
| MLC | 96.8 | 2.0 |
| OnePath | 98.7 | 1.9 |
| TAL | 95.8 | 1.3 |
| Westpac/BT | 98.1 | 1.7 |
| Zurich | 98.3 | 1.8 |
| Industry Average | 97.1 | 1.5 |
TPD INSURANCE CLAIMS PERFORMANCE IN 2021
| Insurance Company | TPD Insurance Claims Accepted % | Average Claim Time months |
| AIA | 67.7 | 9.2 |
| Resolution Life/AMP | 89.2 | 5.4 |
| NobleOak/NEOS | N/A | N/A |
| ClearView | N/A | N/A |
| CommInsure | 83.5 | 7.7 |
| MLC | 86.7 | 7.2 |
| OnePath | 76.3 | 9.6 |
| TAL | 78.0 | 6.9 |
| Westpac/BT | 87.9 | 7.9 |
| Zurich | 82.1 | 8.4 |
| Industry Average | 82.5 | 7.4 |
TRAUMA INSURANCE CLAIMS PERFORMANCE IN 2021
| Insurance Company | Trauma Insurance Claims Accepted % | Average Claim Time months |
| AIA | 86.7 | 1.8 |
| Resolution Life/AMP | 85.4 | 1.6 |
| NobleOak/NEOS | N/A | N/A |
| ClearView | 90.5 | 2.0 |
| CommInsure | 84.1 | 2.0 |
| MLC | 90.0 | 2.0 |
| OnePath | 83.2 | 2.1 |
| TAL | 85.1 | 1.1 |
| Westpac/BT | 90.4 | 1.6 |
| Zurich | 91.2 | 1.4 |
| Industry Average | 86.8 | 1.7 |
INCOME PROTECTION CLAIMS PERFORMANCE IN 2021
| Insurance Company | Income Protection Claims Accepted % | Average Claim Time months |
| AIA | 91.5 | 1.9 |
| Resolution Life/AMP | 96.3 | 1.6 |
| NobleOak/NEOS | 95.9 | 2.8 |
| ClearView | 91.9 | 3.1 |
| CommInsure | 97.6 | 1.3 |
| MLC | 94.8 | 1.6 |
| OnePath | 94.6 | 1.6 |
| TAL | 95.6 | 1.2 |
| Westpac/BT | 96.4 | 1.4 |
| Zurich | 93.4 | 1.6 |
| Industry Average | 95.0 | 1.6 |
The 2021 results can be viewed graphically at Claims Statistics – All the Facts and Figures. Detailed results for all distribution methods can be viewed on the ASIC Moneysmart website.
More information on each of the insurance companies listed above can be found at Compare Life Insurance Companies.