Surge in Claims for Non-Advised Disability Income Insurance

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

For disability income insurance (DII) products distributed via group superannuation and group ordinary channels, the claims paid ratios stand at 99% and 74% respectively over the 12-month period ending in June. These figures are based on a projected 24-month claims payment period.

The standout 113% ratio for individual non-advised DII underscores a scenario where claims payments surpass premiums collected, setting it as the leader among seven product categories available through four distinct sales channels.

Beyond individual non-advised DII, other product classes include total and permanent disability, death, trauma, consumer credit insurance, funeral, and accident insurance.

Interestingly, the Australian Prudential Regulation Authority (APRA), which is the source of this comprehensive data-originally reported by a financial industry publication, provides no additional commentary on these biennial life insurance claims and disputes statistics. Nevertheless, APRA’s recent annual report highlights ongoing endeavors to enhance the sustainability of individual DII products, which last year led to a reevaluation of capital requirements for select insurers.

Additional APRA data illustrates varying claims paid ratios for total and permanent disability (TPD) coverage: individual-advised has a 55% ratio, individual non-advised 58%, group super 100%, and group ordinary 37%.

Disability income insurance also tops the charts in terms of dispute frequency: for individual-advised products, there are 334 disputes per 100,000 lives insured, while the non-advised channel experiences even higher contention at 425 disputes per 100,000.

Published:Wednesday, 6th Nov 2024
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Insurance News

Clear

Why AI Governance Now Matters for Allied Health Cover

24 Jul 2026: Paige Estritori

Recent insurance industry reporting on AI accountability should be read carefully by allied health practices, not just large insurers. The issue is simple: organisations are adopting AI tools faster than they can explain who is responsible when the tool produces an error, uses the wrong data or influences a decision that later causes harm. - read more

Why AI Insurance Tips Need a Human Sense-Check

24 Jul 2026: Paige Estritori

A new Australian insurance research report published on 21 July 2026 has raised a practical warning for fitness professionals who use AI tools to research business cover: not every confident answer is coming from a reliable or licensed source. - read more

Softening Insurance Market Gives Consultants Room to Review Cover

24 Jul 2026: Paige Estritori

Australian consultants approaching renewal season may have more negotiating room than they have had for several years, with Marsh’s latest Global Insurance Market Index showing another quarter of falling commercial insurance pricing. - read more

Defect Insurance Reform Moves From Policy Ambition to Market Test

24 Jul 2026: Paige Estritori

Australia’s apartment defect insurance debate has moved into a more practical phase: not whether governments want stronger consumer protection, but whether the insurance market can deliver it at scale, on time and on workable terms. - read more

AFCA Travel Insurance Decision Puts Pre-Existing Conditions Under the Microscope

24 Jul 2026: Paige Estritori

A fresh Australian Financial Complaints Authority decision has highlighted how broadly travel insurance exclusions for pre-existing medical conditions can operate, particularly where anxiety or another mental health condition is already recorded before a policy is bought. - read more

Could AI Speed Up Heavy Vehicle Repair Claims?

23 Jul 2026: Paige Estritori

Australian smash repair insurtech DingGo has introduced an AI platform designed to produce rapid crash repair estimates from vehicle photos, adding another signal that claims technology is moving quickly across the motor insurance sector. Its Crash Intelligence AI tool uses a large dataset of completed Australian repairs to estimate likely repair costs, with the company positioning it for dealer groups, independent repairers and panel shops. - read more

Click for more Insurance News