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 Climate Risk Is Back on the Truck Insurance Agenda

13 Aug 2026: Paige Estritori

A fresh round of insurance industry warnings about climate exposure is a timely reminder for Australian truck operators that weather risk is no longer a background issue. Floods, bushfires, severe storms and prolonged road closures can affect far more than a single damaged vehicle. For owner-drivers and fleet managers, the larger concern is often the chain reaction: stranded equipment, missed delivery windows, cargo complications, depot damage and extended downtime while repair networks are under pressure. - read more

Affordability Pressure Puts Trade Cover Back Under the Spotlight

13 Aug 2026: Paige Estritori

Fresh industry attention on insurance affordability is more than a household budget story. For Australian tradespeople, rising premiums, higher repair costs and uneven disaster exposure can flow directly into how clients fund work, how projects are scoped and how small trade businesses protect their own equipment, vehicles and liability risks. - read more

Why Claim Clarity Matters More Than Ever for Income Insurance

13 Aug 2026: Paige Estritori

Recent complaints reporting from Australia's financial dispute resolution system has put a practical issue back in front of workers: the value of income insurance is not only in the monthly benefit promised, but in how clearly a policy works when a claim is made. - read more

What electronic work diaries mean for truck insurance

13 Aug 2026: Paige Estritori

Recent transport industry coverage has again put electronic work diaries in the spotlight, as more heavy vehicle operators look for practical ways to manage fatigue obligations without relying solely on paper records. For Australian trucking businesses, the shift is more than an administrative upgrade. It has direct implications for compliance evidence, driver management, incident investigation and the way insurers assess operational risk. - read more

Life Code Findings Put Income Protection Claims Back Under the Microscope

12 Aug 2026: Paige Estritori

The latest industry attention on Life Insurance Code compliance is another reminder that income protection insurance is not just about having a policy in place. For working Australians, the real test comes when illness or injury interrupts earnings and a claim needs to move from paperwork to practical financial support. - read more

Lithium Battery Fire Risk Puts Boat Cover Under the Spotlight

12 Aug 2026: Paige Estritori

Fresh marine safety attention on lithium-ion battery fires is a timely warning for Australian boat owners, particularly as more vessels carry rechargeable equipment. From electric tenders and fishing electronics to portable fridges, power tools, e-foils, scooters and camera gear, modern boating increasingly depends on compact batteries that can store a lot of energy in a small space. - read more

Click for more Insurance News