Life Insurance Claims Statistics 2012

The life insurance claims statistics for the major Australian life insurance companies have risen dramatically in the last few years, with millions of dollars in claims being paid out to those with life insurance cover.

Here we summarise the claims statistics for some of the major Australian life insurance companies, detailing statistics for each major type of life insurance policy options as well as the major causes for claiming on life insurance.

The following is based upon the most recently available statistics issued by each respective insurer (no earlier than 2010).

Summary of Statistics

  • An average of $14.3 million was paid to 245 Australians every working day in 2010.
  • In general, the highest total claim payments were made for life insurance Death claims, followed by Income Protection insurance, Total & Permanent Disability (TPD) insurance, and Trauma insurance.
  • Cancer featured as the most prominent cause of life insurance claims. For each type of insurance policy, the major causes of claims generally included:
  1. Life Insurance Death claims – cancer and heart conditions
  2. TPD – musculoskeletal conditions (including back/neck conditions, fractures, arthritis, accidents and other musculoskeletal conditions) and cancer
  3. Trauma – cancer
  4. Income Protection – musculoskeletal conditions.

 

Life Insurance Company Claims Statistics

TAL Life Insurance

CommInsure

In 2010, CommInsure paid a total of $608.1m in life insurance claims, these included claims for:

  • Death – $256.6mTPD – $124m
  • Trauma – $72.2m
  • Income protection – $155.3m

TAL Life Insurance

TAL

 

In 2011, TAL paid in total $565.2m in life insurance claims, including claims for:

  • Death – $300.5m. The most common claim cause being cancer (32%)
  • TPD – $75.3m. The most common claim cause being cancer (36%)
  • Trauma – $43.8m. The most common claim cause being cancer (63%)
  • Income Protection – $145.6m. The most common claim cause being musculoskeletal (41%).

 

AIA Life Insurance

 

AIA

In 2011, AIA paid a total of 445m in life insurance claims, these included claims for:

  • Death – $241.7m. The most common claim cause being cancer (40.3%)
  • Trauma – $23.3m. The most common claim cause being cancer (63.6%)
  • TPD – $88.6m. The most common claim cause being musculoskeletal (43.1%)
  • Income Protection – $91.3m. The most common claim cause being musculoskeletal (46.2%)

 

AXA Life Insurance

 

AXA

In 2010, AXA paid a total of 405.9m in life insurance claims, these included claims for:

  • Death – $150.2m
  • Trauma – $48.7m
  • TPD – $42.2m
  • Income Protection – $164.8m

 

OnePath Life Insurance

 

OnePath

In 2011, OnePath paid out 8,052 life insurance claims worth in total $315.9m, these included:

  • 1,807 Death claims worth in total $150.5m. The most common cause of claims were cancer (32%), heart conditions (12%) and “other” causes (38%).
  • 1,241 TPD claims worth in total $75.9m. The most common cause of claims were back injury (25%), musculoskeletal (19%), and psychiatric conditions (11%).
  • 5,004 Income Protection claims worth in total $89.5m. The most common cause of claims were cancer (17%), musculoskeletal (17%), psychiatric conditions (16%).

 

AMP Life Insurance

 

AMP

In 2010, AMP paid in total $293.3m in life insurance claims, including claims for:

  • Death – $120.5m. The most common claim causes being cancer (34%), heart conditions (21%) and “other” causes (27%).
  • Trauma – totaling at $37.7m. The most common claim cause being cancer (81%).
  • TPD – $54.8m. The most common claim causes being musculoskeletal (15%), mental illness (15%), and “other” causes (19%).
  • Income Protection – $55.9m. The most common claim causes being mental illness (19%), accidents (18%) and “other” causes (21%).

 

Zurich Life Insurance

 

Zurich

In 2011, Zurich paid out 259 life insurance claims worth in total $69.1m. Of these claims:

  • 62.9% were Death claims
  • 28.2% were Trauma claims
  • 8.9% were TPD claims

The total amount of Income Protection benefits paid out by Zurich in the 2011 calendar year was $16,826,080.

Zurich admitted 95 per cent of lump sum claims lodged, and denied only 4.6% (the remainder were not proceeded with).