Individual non-advised disability income insurance has a claims paid ratio of 113% and individual policies sold via personal advice have a ratio of 68%, according to the latest prudential data.

For DII products distributed through group superannuation and group ordinary channels, the claims paid ratios are 99% and 74% respectively, according to figures for the rolling 12-month period to June. DII claims paid ratios are estimated using a 24-month payment period.

The 113% ratio for individual non-advised DII indicates claims paid exceed premiums received. It is the highest out of seven product classes distributed across the four sales channels.

The other classes are total and permanent disability, death, trauma, consumer credit insurance, funeral and accident.

The Australian Prudential Regulation Authority provides no commentary on the biannual life insurance claims and disputes figures. But the regulator’s annual report, released last month, said its program of work to support the long-term sustainability of individual DII continued last year.

It said some progress had been made, resulting in a reduced capital requirement for a small number of insurers.

In other key data from the APRA claims and disputes statistics, individual-advised TPD cover has a claims paid ratio of 55%; individual non-advised 58%; group super 100%; and group ordinary 37%.

DII has the highest dispute ratio for individual advised life products, at 334 lodged per 100,000 lives insured. It also leads in the individual non-advised distribution channel, at 425 per 100,000.

Click here for the statistics.