Financial Services Council: Life Insurance Awareness Week – Detailed Data Reveals Top Causes of Claim for Industry

SYDNEY, Australia, July 29 -- The Financial Services Council issued the following news release:

The Financial Services Council (FSC) is using Life Insurance Awareness week as an opportunity to release data which reveals interesting insights into the health of the nation - today's theme is 'data'.

KPMG on behalf of the FSC provides in-depth analysis of the causes of life insurance claims, particularly for Australians of working age - this data is updated every six months.

FSC senior policy manager for life insurance, Nick Kirwan said the life insurance industry paid out more than $12 billion to 101,821 Australians and their families during 2019.

"Life insurance companies pay out almost $33 million to 279 Australians and their families every single day, 365 days a year. Payments are made to people who have lost a partner, a parent or a loved one, or to help people support themselves and their family when they are too ill to work, after a critical illness or who are not expected to be able to work ever again."

"What's important to remember is that behind every data point there is a human, a family, a loved one getting financial support when they need it most. When we see the collective data, and especially the many and varied causes of claim and just how often they occur, it reveals the scale of the human tragedies that Australians and their families can, and all too often do, go through."

Data insights for the 2019 year tell us:

* Over $12 billion was paid out to 101,821 Australians;

* For death cover there were 13.4 million covers in force, 97 per cent of lodged claims were paid and the highest cause of claim was cancer at 43 per cent;

* For Total and Permanent Disability (TPD) there were 11.1 million covers in force, 90 per cent of lodged claims were paid and the highest cause of claim was mental health at 25 per cent;

* For Income Protection/Disability Income there were 5.8 million covers in force, 95 per cent of lodged claims were paid and the highest cause of claim was accidents at 33 per cent;

* For Trauma insurance there were 1.1 million covers in force, 86 per cent of lodged claims were paid, and the highest cause of claim was for cancer at 58 per cent;

Mr Kirwan said: "During life insurance awareness week we encourage all Australians to check what life insurance cover they have - be aware of what you have and what you're paying for. Give your superannuation trustee or life insurance company a call today so you and your family are secure no matter what happens."