Mental health issues are the most common cause of income protection claims for middle-aged people, Rice Warner research on group life insurance has found.

Musculoskeletal claims are most prominent among over-50s, the analysis of claims data from 16 large super funds shows.

In total and permanent disability (TPD) insurance, musculoskeletal issues represent about one-third of all fund members’ claims.

Such claims are at least twice as likely as any other type.

In younger age groups, accidents, poisons and crime are the main reasons for TPD claims.

Mental health or stress matters account for more than 20% of all TPD claims for members aged 30-39, the highest proportion in any age band.

Rice Warner Head of Consulting and Research Jenni Baxter says the study gives insurers better insights into the probability of claims.

“Group insurance claims are a complex area,” she said. “The greater the available data volumes, the more we can drill down to discover credible findings.”

Ms Baxter says while the findings do not relate to any single fund, they provide a framework for pricing and a model for actuaries to measure their own funds’ claims experiences.

“Industry benchmark statistics are more readily available for the retail insurance sector.

“Group pricing actuaries have resorted to outdated statistics from different markets or even relying on data sourced from offshore.”

The research also shows early lodgement of group life claims is the key to quick returns to work. Super fund members with income protection cover who lodge an illness or disability claim within six months are 40% more likely to return to work within a year than those claiming in 6-12 months.

The research shows waiting periods have a significant impact on return-to-work statistics.

There is a 68% greater chance that a fund member on a 30-day waiting period will not be “on claim” in 12 months, compared with a member on a 90-day waiting period.

The research also reveals how occupation affects claims reporting delays. The delay for hazardous jobs is 60% longer than for professional occupations.