Individual advised death cover has a 96% admittance rate compared with 88% for non-advised cover, according to the Australian Prudential Regulation Authority’s (APRA) life insurance claims and disputes data for last year.

For total and permanent disability (TPD) insurance, the admittance rate for individual advised cover is 87%, against 59% for policies not bought through an adviser.

APRA says the higher admittance rate for individual advised insurance could be due to policyholders having clearer expectations about what they are covered for, or advisers discouraging them from lodging non-insured claims.

The data covers 20 life insurers writing business last year and breaks down the figures according to cover type and channel. Trauma, disability income insurance, consumer credit insurance, funeral and accident are the other five covers included in the APRA report.

Individual advised death cover has a claims paid ratio of 39%, against 32% for non-advised policies. The claims paid ratio for individual advised TPD cover is 45%, against 28% for non-advised cover.

To see the report, click here.