Farm Insurance NZ
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
Source: Paige Estritori
| Medical Emergencies Lead Australian Travel Insurance Claims in 2024 28 Nov 2025: Paige Estritori In 2024, medical incidents emerged as the leading cause of travel insurance claims among Australian travellers, accounting for more than 40% of all claims handled by nib Travel. This trend underscores the critical importance of securing comprehensive travel insurance to mitigate the financial risks associated with medical emergencies abroad. - read more |
| QBE Insurance Faces Market Challenges with Slower Premium Growth 28 Nov 2025: Paige Estritori QBE Insurance Group, Australia's largest insurer by market value, recently reported a slowdown in premium rate growth, leading to a significant decline in its share price. The company's global average premium rate increased by only 1.5% in the nine months leading up to September 30, 2025, a decrease from the first-half pace. This deceleration is primarily attributed to slower growth in business property insurance prices. - read more |
| EQT's Bid to Acquire AUB Group: Implications for the Insurance Sector 28 Nov 2025: Paige Estritori In a significant move within the Australian insurance industry, Swedish private equity firm EQT has extended a takeover offer for AUB Group, valuing the company at A$5.25 billion. This proposal includes a price of A$45 per share, representing a 25.1% premium over AUB's last closing price. Following the announcement, AUB shares surged up to 11% to A$39.95, though they remained below the offer price. - read more |
| Australian Insurers Report Record Profits Amid Market Dynamics 28 Nov 2025: Paige Estritori Australia's general insurance industry has reported a return on equity (ROE) of 19% for the 2025 financial year, marking the highest in a decade. This impressive performance is attributed to a combination of factors, including benign weather conditions, strong investment gains, and the continued flow-through of premium increases. - read more |
| Seafood Distributor Prevails in Insurance Claim for Stock Losses Due to Power Outage 28 Nov 2025: Paige Estritori In a recent ruling by the Australian Financial Complaints Authority (AFCA), a seafood distribution business has successfully claimed insurance for stock losses incurred during a week-long power outage. This case underscores the complexities surrounding insurance claims related to power failures and the importance of understanding policy exclusions. - read more |
| Victorian Café Secures Insurance Payout Following Landslide-Induced Business Interruption 28 Nov 2025: Paige Estritori A café located near the Falls Creek alpine resort in Victoria has successfully claimed business interruption insurance after a landslide led to the closure of the main access road, significantly impacting its operations. This case sheds light on the intricacies of insurance claims related to natural disasters and the importance of understanding policy clauses. - read more |
| Protecting Your Farming Future: Why Machinery Breakdown Coverage is Essential Farming is a vital part of New Zealand's economy and cultural heritage, representing a way of life for thousands across the country. With its unique landscapes and diverse climate, New Zealand farmers are renowned for producing a wide array of high-quality products that serve not only the nation's needs but also supply a multitude of international markets. - read more
|
| Customizing Your Farm Insurance: Tailoring Policies to Fit Unique Agricultural Needs Those who work the land know that every farm has its own heartbeat - its unique rhythm defined by the crops it yields, the livestock it nurtures, and the natural environment it exists within. Recognizing this individuality is crucial, especially when it comes to safeguarding your agricultural investment with the right insurance policy. - read more
|
| Securing Your Farm's Future: Top Estate Planning Tips for New Zealand Farmers New Zealand's farming community forms the backbone of its thriving agricultural sector, yet many overlook the critical importance of proactive estate planning. With farmland often being held within families for generations, securing its future is not just a financial concern, but a deeply personal one as well. - read more
|
| Natural Disaster Preparedness: Insurance Tips for Farmers Facing Adversity In the heart of New Zealand's pastoral verdure, the significance of preparedness for natural disasters is paramount for the farming industry. The distinct landscape, while providing an idyllic backdrop for agricultural pursuits, is not without its challenges. Farmers are often at the mercy of nature's unpredictability, making disaster preparedness not just prudent but essential for the continuity of their livelihood. - read more
|
| When the Rain Doesn't Come: Financial Planning Tips for Persistent Drought For farmers across rural Australia, the unyielding dry spells brought on by persistent drought conditions are not just an environmental concern but a significant financial challenge. Effective financial planning becomes a cornerstone strategy for ensuring the resilience and longevity of these crucial agricultural businesses. The prickling heat and parched earth serve as stark reminders of nature's capacity to impact livelihoods, especially when the rain doesn't grace the farmlands for extended periods. - read more
|
| Tractors, Livestock, and Crops: Tailoring Your Farm Insurance to Fit Your Needs Welcome to the world of farming, where the fruits of your labor are as tangible as the soil you till. But just as the land is subject to the whims of nature, so too is the business of agriculture. This is where farm insurance becomes essential. Farmers face a set of challenges and uncertainties unlike any other industry, primarily due to the unpredictable forces of weather. Protecting your agricultural investment with appropriate insurance is not just prudent—it's critical for the survival and prosperity of your farm. - read more
|
|
|
Customizing Your Farm Insurance: Tailoring Policies to Fit Unique Agricultural Needs Those who work the land know that every farm has its own heartbeat - its unique rhythm defined by the crops it yields, the livestock it nurtures, and the natural environment it exists within. Recognizing this individuality is crucial, especially when it comes to safeguarding your agricultural investment with the right insurance policy. - read more
|
|
|
Natural Disaster Preparedness: Insurance Tips for Farmers Facing Adversity In the heart of New Zealand's pastoral verdure, the significance of preparedness for natural disasters is paramount for the farming industry. The distinct landscape, while providing an idyllic backdrop for agricultural pursuits, is not without its challenges. Farmers are often at the mercy of nature's unpredictability, making disaster preparedness not just prudent but essential for the continuity of their livelihood. - read more
|
|
|
Protecting Your Farming Future: Why Machinery Breakdown Coverage is Essential Farming is a vital part of New Zealand's economy and cultural heritage, representing a way of life for thousands across the country. With its unique landscapes and diverse climate, New Zealand farmers are renowned for producing a wide array of high-quality products that serve not only the nation's needs but also supply a multitude of international markets. - read more
|