The largest ever analysis of death and disability claims in Australia has revealed an average payout of little more than $130,000.

KPMG Actuaries analysed 8.5 million insured cases and more than 16,400 claims worth $2.2 billion for the industry-wide study, undertaken on behalf of life insurance members of the Investment and Financial Services Association (IFSA).

The investigation examined records from 14 life insurers from 2004-06, assessing death, total permanent disability and trauma insurance policies. IFSA claims it is the largest ever analysis of insured lives in Australia.

Cancer continued to comprise the majority of trauma claims during the period, accounting for 81% of all claims by females. Blue-collar workers had predictably higher levels of total and permanent disability claims than their office-bound counterparts.

Overall mortality rates continued to improve over the past decade.

IFSA CEO John Brogden says the study has revealed important indicators about the health, wellbeing and longevity of the insured Australian population.

He says the average claim of $132,537 may “seem substantial, but when you weigh that up with the average Australian debt commitment, there is still a significant risk protection gap”.

The survey is intended to help IFSA members offer products that are more affordable and better tailored to their family and wealth protection requirements.