About the data in this tool toggle accordian row

This tool reports data for all policies sold by an insurer for the type of life insurance cover and the sales channel selected. You can contact an insurer to understand the differences between individual insurance policies they offer.

Data in this tool is reported by life insurers and friendly societies to the Australian Prudential Regulation Authority (APRA). For more life insurance claims data see APRA's life insurance claims data collection page.

APRA licences insurers to operate in Australia and monitors them using a number of rules. These rules are designed to ensure that they remain financially stable and are able to keep the financial promises they make to their policyholders.

The data in this tool includes:

1. Claims accepted rate - the percentage of claims an insurer accepted for payment out of all claims that went to a final decision during the period. Reasons why an insurer may not accept a claim include:

an exclusion clause applies. For example, the person claiming had a pre-existing condition that is excluded under the policy.

a person making a claim forgot or chose not to tell the insurer information that was required when signing up to the insurance policy.

the claim does not meet a definition in the insurance contract. For example, a person claiming does not meet the requirements for the definition of a heart attack.

2. Average claim time (months) - the average amount of time it took for an insurer to decide whether to accept or decline a claim for payment during the period. Under the Financial Services Council's Life Insurance Code of Practice an insurer should let claimants know about the initial decision within 2 months for income protection insurance and within 6 months for all other types of life insurance.

Reasons why a claim can take longer to finalise include:

it takes a long time for an insurer to obtain evidence needed to assess a claim from doctors, government agencies or third parties.

the insurer is having difficulties contacting the claimant.

the claim is fraudulent, the insurer suspects fraud or the claimant did not provide all required information to the insurer, and further investigation is required.

3. Disputes per 100,000 lives insured - the number of claims related disputes lodged during the period for every 100,000 people insured. Disputes about a claim may be lodged with the insurer, an external dispute resolution scheme, a Court or Tribunal. Disputes can occur for many reasons including disagreement or dissatisfaction with:

the claims decision

the amount received for a claim

the claims process

4. Policy cancellation rate - the percentage of policies that were cancelled by the insurer or the person insured during the period. An insurer can cancel a life insurance policy if: