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Insurance Claims Statistics

Insurance Claims Statistics – all the facts and figures in one place

Which are the best life insurance companies for paying claims?

The number one question we get asked at Insurance Watch is “Do life insurance companies really pay claims?”. In order to address this question we have gathered together all in one place claims information from a variety of sources.

What do the industry regulators say about claims payout rates?

We know from studies done by ASIC and APRA and claims data for 2016 and the first half of 2017 that for the industry as a whole more than 90% of all claims are being paid. The percentage of claims paid varies depending on the type of insurance, with the percentage paid being higher for Life insurance and Income Protection claims than for TPD and Trauma claims.

Statistics on the payout rates of individual insurers have not yet been made available.  However ASIC and APRA are working on a reporting framework for insurance companies and are committed to providing comparable insurer-specific data in the future.

The following infographic from ASIC summarises the findings of their 2016 report into claims handling.

What is the experience of other industry players?

Over time Insurance Watch has helped many of its customers to make successful claims on their policies.  In other parts of the website we provide examples of these Life Insurance, Trauma and Income Protection claims.  In our experience very few claims are declined, although non disclosure can put clients at risk.  As every claim is different in its circumstances it is difficult to generalize these results across insurers.

A recent survey of advisers tried to obtain an industry wide perspective of the relative claims performance of insurance companies.  The survey results ranked insurers according to adviser perceptions of how the companies managed claims. However as the claims experience of each adviser may be limited the results are likely to be subjective rather than based on factual data.

What is the experience of customers who have submitted claims?

Customer reviews have been left on our website by over 500 holders of Life, TPD, Trauma and Income Protection policies.  From these we can learn about the claims experiences of individuals – both good and bad.  But again we can’t know the full circumstances behind each claim (e.g. were these superannuation or retail policies, was non-disclosure involved etc) or how indicative these particular claims are of an insurer’s overall performance.

What we do know is that good news stories often don’t often receive much publicity.  So we have collected claims videos from various insurers telling the moving stories of clients who have needed to make a claim and how this has made a difference to their lives and the lives of their families.

Watch their real life stories below:

Life Insurance and TPD Claims Stories
Trauma / Critical Illness Claims Stories
Income Protection Claims Stories

What do the claims statistics show?

Below we have collated the claims statistics from all the companies we cover including their latest published document giving a breakdown of claims paid.

The absolute dollar value of claims paid must be viewed in the context of the size of each insurer and their premiums in force.  Equally the mix of claims for each insurer will be influenced by the composition of their customers.  For example, each insurer has a different mix of Life/TPD/Trauma/Income Protection insurance policies, group/super versus individual/retail policies, policyholder ages and occupations.

What these statistics DO show is that claims get paid and in very large numbers – the total annual claims paid by the insurance companies listed below add up to over $7.5 Billion.  This should give confidence to buyers of insurance policies that help will be there when they need it the most.

Compare the premiums and benefits offered by these companies at Compare Quotes Online

AIA

Total Claims Paid (2016): $1,156 M

Death/Terminal Illness – $526 M

TPD – $305 M

Trauma – $55 M

Income Protection – $268 M

AMP

Total Claims Paid (2017): $1,112 M

Death/Terminal Illness – $426 M

TPD – $251 M

Trauma – $108 M

Income Protection – $327 M

ASTERON

Total Claims Paid (2017): $390 M

Death/Terminal Illness – $146.7 M

TPD – $46.5 M

Trauma – $61.3 M

Income Protection – $135.5 M

BT

Total Claims Paid (2017): $384 M

Death/Terminal Illness – $171 M

TPD – $47 M

Trauma – $86 M

Income Protection – $80 M

CLEARVIEW

Total Claims Paid (2017): $72 M

Death/Terminal Illness/TPD – $27 M

Trauma – $9 M

Income Protection – $36 M

COMMINSURE

Total Claims Paid (2017): $1074 M

Death/Terminal Illness – $423 M

TPD – $287 M

Trauma – $94 M

Income Protection – $270 M

MLC

Total Claims Paid (2016): $690 M

Death/Terminal Illness/TPD – $400 M

Trauma – $90 M

Income Protection – $200 M

ONEPATH

Total Claims Paid (2017): $932 M ($494 M retail)

Death/Terminal Illness – $153 M

TPD – $56 M

Trauma – $127 M

Income Protection – $158 M

TAL

Total Claims Paid (2017): $1,600 M

Death/Terminal Illness – $640 M

TPD/Trauma/Income Protection – $960 M

ZURICH

Total Claims Paid (2017): $208 M

Death/Terminal Illness – $74 M

TPD – $22 M

Trauma – $47 M

Income Protection – $65.0 M

Other useful information:

  • To find out how to make a claim watch “Understanding the Claims Process
  • To compare quotes and benefits of the policies offered by the above insurance companies go to Compare Quotes Online Now
  • To find out who owns the above insurance companies, their size and their background go to Compare Insurance Companies
  • To obtain advice on your personal situation from one of our qualified advisers, including insurance strategies and policies to suit your needs, go to Get Advice