Latest Australian Prudential Regulation Authority (APRA) data shows total and permanent disability (TPD) with a claims paid ratio of 78%, the highest among seven life product lines covered for the rolling 12-month period to June 30. 

Disability income insurance (DII) recorded a 66% claims paid ratio, trauma 52%, death 51%, funeral 35%, consumer credit insurance (CCI) 32% and accident 18%, the Life Insurance Claims and Disputes Statistics report says.  

Claims paid ratio refers to the dollar amount of claims paid out in the reporting period as a percentage of the annual premiums receivable in the same period. 

By distribution channels, payouts for group products peaked in 2021 before returning to a lower level in the recent periods, APRA says. 

Individual-advised TPD policies have a claims paid ratio of 54%, individual non-advised 105%, group super 94% and group ordinary 31%. 

For DII, individual-advised policies have a claims paid ratio of 50%, individual non-advised 137%, group super 85% and group ordinary 80%. 

In relation to disputes, the lodgement ratios for DII and funeral have increased considerably over time due to regulatory focus, APRA says. 

Individual-advised DII policies had 2461 disputes, individual non-advised 410, group super 2373 and group ordinary 163. 

For funeral, individual-advised policies had 478 disputes or 80 disputes per 100,000 lives insured. 

The Life Insurance Claims and Disputes Statistics update is based on input from 17 Australian life insurers writing direct business.