APRA and ASIC have released the Life Insurance Claims and Disputes Statistics report for the period 1st Jan 2022 to 31st Dec 2022. The report provides valuable insights into the claims and dispute resolution processes of life insurance companies in Australia.
Key findings include:
• Advised clients had a higher success rate for claims compared to non-advised clients
• The claims paid ratio varied significantly across different insurance products, ranging from 18% to 109%
• The majority of claims were processed within six months, except for TPD claims where 30% took longer
• Income Protection and TPD had the highest dispute lodgement ratio
• TPD/Trauma had the highest percentage (7%) of disputes where the original decision was reversed
• Disputes were mainly resolved within 45 days, and reversals were primarily due to incorrect outcomes or additional information provided
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