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Life insurance claims data released for 2020

APRA and ASIC have released their life insurance claims data for 2020.  This means that claim acceptance rates and average claim processing times are now available on an aggregate and individual company basis for the last three years.

Claims Paying Trends

Certain trends have become evident over the period 2018 to 2020.

Firstly, claims acceptance rates for policies distributed via financial advisers/life insurance brokers have been consistently higher than for policies sold direct to the public. In 2020, 96.4% of life insurance claims were accepted for adviser/broker policies, compared to only 90.0% for direct policies.  For income protection the difference was 94% claims accepted for adviser/broker policies, compared to only 85% for direct policies.

Secondly, compared to when the statistics were first released for 2018, there has generally been an improvement in the time insurers have taken to finalise claims.  For life insurance policies, the average claim time has improved from 3.2 months in 2018 to 1.5 months in 2020. For TPD insurance policies, the average claim time has similarly improved from 8.3 months to 6.8 months.

Thirdly, the products which have the best claims acceptance rates continue to be life insurance and income protection policies, with 96.4% and 94% of all claims accepted respectively.  Similarly, the products with the lowest claims acceptance rates have continued to be trauma insurance, with a claims accepted rate of 85.7%, and TPD insurance at 85.7%.

Individual Company Claims Performance

What has changed over the course of the last three years is the insurers who have been the best at paying claims.

Insurance Watch has used the APRA/ASIC statistics (for adviser/broker policies only) to determine the three top insurers for accepting claims overall in each year.

 

Top Insurance Companies for accepting claims

2020 2019 2018
CommInsure MLC MLC
ClearView Zurich Asteron
Asteron CommInsure AMP

The same methodology has been used to determine the three insurers who have been the fastest at paying claims in each year:

 

Fastest Claims Paying Insurance Companies

2020 2019 2018
MLC TAL Asteron
TAL Zurich TAL
Zurich MLC MLC

The 2020 claims performance for individual life insurance companies in each product category is shown below:

 

2020 LIFE INSURANCE CLAIMS

Company Life Insurance Claims Accepted % Average Claim Time (months)
AIA 94.2 1.8
AMP 95.9 1.0
Asteron 98.3 2.1
ClearView n/a n/a
CommInsure 97.5 1.6
MLC 93.9 1.5
OnePath 98.3 1.9
TAL 96.9 1.1
Westpac/BT 98.1 1.8
Zurich 97.5 1.4
Industry Average 96.4 1.5

 

2020 TPD INSURANCE CLAIMS

Company TPD Insurance Claims Accepted % Average Claim Time (months)
AIA 70.8 11.0
AMP 85.2 5.7
Asteron 83.0 6.1
ClearView n/a n/a
CommInsure 92.3 7.6
MLC 84.2 5.7
OnePath 76.0 8.6
TAL 68.0 7.6
Westpac/BT 76.7 9.1
Zurich 82.1 5.7
Industry Average 81.5 6.8

 

2020 TRAUMA INSURANCE CLAIMS

Company Trauma Insurance Claims Accepted % Average Claim Time (months)
AIA 85.9 1.8
AMP 81.1 1.6
Asteron 85.5 1.4
ClearView 95.5 1.1
CommInsure 81.7 2.2
MLC 86.0 1.2
OnePath 86.9 2.0
TAL 83.8 1.4
Westpac/BT 92.9 1.3
Zurich 85.0 1.3
Industry Average 85.7 1.6

 

2020 INCOME PROTECTION INSURANCE CLAIMS

Company Income Protection Claims Accepted % Average Claim Time (months)
AIA 91.0 2.0
AMP 94.7 1.9
Asteron 96.5 1.3
ClearView 91.9 2.2
CommInsure 94.5 1.4
MLC 95.3 1.2
OnePath 93.4 1.3
TAL 92.3 1.2
Westpac/BT 95.7 1.7
Zurich 94.6 1.5
Industry Average 94.0 1.5

These results can be viewed graphically at Claims Statistics – Life Insurance Claims Statistics – All the Facts and Figures. For more information about these insurance companies see our Life Insurance Company Comparison Table

 

 

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