The total amount of claims dollars paid to claimants has increased for the tenth year running, according to research from consultancy firm The Risk Store.
In its report, '2015 Life Industry Claims Paid Statistics', the daily amount paid to claimants, and their families and businesses, exceeded $25 million for the first time, paid to a record 89,291 claimants.
The report names the top 3 claims causes across the four key life insurance product types: death, total and permanent disability (TPD), trauma, and income protection.
Cancer was the leading cause for claims on death and trauma policies, while musculoskeletal injuries was the leading cause for claims on TPD and income protection policies.
The Risk Store managing director Pete Wincott said that, despite recent negative media coverage relating to alleged poor claims practices, "the industry on the whole employs very good people who do a very good job of paying claims".
However, Mr Wincott also added that compiling the data was a very difficult and time-consuming exercise, citing lack of support from some senior managers which has impeded data collection.
"We expected it would have been a priority to get these numbers out the community sooner and were hoping to go to publication much sooner," he said.
"As an industry, we should and can act faster."
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 20 Oct 2017Parliamentary insurance group formedBy Staff Reporter
- 20 Oct 2017Treasurer introduces BEAR legislationBy Aleks Vickovich
- 20 Oct 2017Westpac to refund $65m to customersBy Annie Kane
- 20 Oct 2017Survey tips independent takeoverBy Aleks Vickovich and Jessica Yun
- 18 Oct 2017AFA suffers budget blowoutBy Killian Plastow
- 18 Oct 2017ISA ups ante on governance lobbyingBy Aleks Vickovich
- view all