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FSC data insights reveals top causes of insurance claims

As part of Life Insurance Awareness Week, the Financial Services Council (FSC) has released data providing insights into the causes of most claims.

The data, which was analysed by KPMG on behalf of the FSC, shows that during 2019 the life insurance industry paid out more than $12 billion in claims to 101,821 Australians and their families.

These payments were not just made to those who had lost a loved one. Financial support was also provided to families whose main income earner was injured or too ill to work. In other cases payments were made to those had suffered a critical illness, or were so disabled that they could never work again.

Some of the key facts revealed were:

Death Claims:

  • Number of covers in force – 13.4 million
  • Number of claims paid – 19,974
  • Total amount paid – $3.644 billion
  • % of lodged claims paid – 97%
  • Highest causes of claim – cancer 43%, accident 17%, circulatory system 14%

TPD (Total and Permanent Disability) claims:

  • Number of covers in force – 11.1 million
  • Number of claims paid – 17,266
  • Total amount paid – $2.579 billion
  • % of lodged claims paid – 90%
  • Highest causes of claim – mental health 25%, musculoskeletal 22%, accident 15%

Trauma (Critical Illness) claims:

  • Number of covers in force – 1.1 million
  • Number of claims paid – 5,159
  • Total amount paid – $1.056 billion
  • % of lodged claims paid – 86%
  • Highest cause of claim – cancer 58%, circulatory system 24%, nervous system 5%

Income Protection claims:

  • Number of covers in force – 5.8 million
  • Number of claims paid – 37,465
  • Total amount paid – $4.342 billion
  • % of lodged claims paid – 95%
  • Highest cause of claim – accidents 33%, cancer 14%, mental health 14%

FSC’s senior policy manager for life insurance, Nick Kirwan, points out that there are individual stories behind the figures. “What’s important to remember is that behind every data point there is a human, a family, a loved one getting financial support when they need it the most. When we see the collective data, and especially the many and varied causes of claim and just how often they occur, it reveals the scale of the human tragedies that Australians and their families can, and all too often do, go through.”

During Life Insurance Awareness week, the FSC has encouraged Australians to check what life insurance cover they have and to ensure that their families will be secure.

Quotes for Life, TPD, Trauma and Income Protection cover can be obtained using Compare Quotes Online.

 

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