Life insurance claims comparison tool
Compare a life insurer
Use this tool to compare how life insurance companies have
handled claims and claims related disputes in the past.
To find the insurer that provides your policy check the product
disclosure statement (PDS) or contact your super fund or financial
To get the most out of your life insurance, consider your own
needs, circumstances and medical history. When looking at a life
insurance policy it's important to check:
- what is and isn't covered, including definitions for medical
conditions and pre-existing medical conditions
- additional benefits or features
- waiting periods before you can claim
- premiums - now and in the future.
Find out more about life insurance.
This tool shows data where there are enough insurers and
finalised claims to provide a reliable comparison.
Life insurance claims tool
‡ The number of finalised claims is too small
to provide a reliable result.
Types of life insurance
and sales channels
Types of life insurance
There are different types of life insurance available. These
cover - pays a set amount of
money when you die. The money will go to the people you nominate as
beneficiaries on your policy. It is also
called 'term life' or 'life cover'.
- Total and
permanent disability (TPD) cover - pays a lump sum to
help with rehabilitation and living costs if you are totally and
permanently disabled. TPD is often sold with life cover.
protection - replaces some of your income if you
are unable to work because of injury or illness.
- Trauma cover - pays a lump
sum if you are diagnosed with a critical illness or injury such as
cancer, heart attack or stroke. It is sometimes called 'critical
illness cover' or 'recovery insurance'.
credit insurance (CCI) - pays a lump sum to
cover repayments on your loan that you can't pay when you lose your
job, you are sick or injured or you die.
insurance - pays a lump sum to help your
family cover funeral and related expenses when you die.
- Accidental death and injury
cover - pays a lump sum for when a person accidentally
dies or is injured. Most accidental death policies include a long
list of exclusions, like death from hazardous activities, drugs,
alcohol and self-harm.
Which sales channel are you comparing?
This tool allows you to compares life insurance claims
where the policy has been obtained:
- Through a superannuation fund - this is
when default life insurance cover is provided through a
superannuation fund or the amount of cover is increased.
See life insurance
through your super fund.
- Through a financial adviser - this is when a
financial adviser recommends a life insurance product that may or
may not be offered within a superannuation fund. For more
information see financial advice.
- Directly through an insurer - this is
when a life insurance policy is bought directly from the insurer,
generally with no personal financial advice or general
advice. See direct life
These are the three most common ways life insurance is sold in
Australia. Some employers also offer group life insurance
to their employees where a single contract covers all
employees. See APRA's life
insurance claims data collection for more information.
About the data in this
This tool reports data for all policies
sold by an insurer for the type of life insurance cover and the
sales channel selected. You can contact an insurer to understand
the differences between individual insurance policies they
Data in this tool is reported by life insurers and friendly
societies to the Australian Prudential Regulation Authority (APRA).
For the more detailed life insurance claims data see APRA's life
insurance claims data collection page.
APRA licences insurers to operate in Australia and monitors them
using a number of rules. These rules are designed to ensure that
they remain financially stable and are able to keep the
financial promises they make to their policyholders.
The data in this tool includes:
1. Claims accepted rate - the percentage of
claims an insurer accepted for payment out of all claims that went
to a final decision during the period.
Reasons why an insurer may not accept a claim include:
- the claim does not meet a definition in the insurance contract.
For example, a person claiming does not meet the requirements for
the definition of a heart attack.
- an exclusion clause applies. For example, the person claiming
had a pre-existing condition that is excluded under the
- a person making a claim forgot or chose not to tell the insurer
information that was required when signing up to the insurance
2. Average claim time (months) - the average
amount of time it took for an insurer to decide whether to accept
or decline a claim for payment during the period.
Under the Life Insurance Code of Practice an insurer should let
claimants know about the initial decision within 2 months for
income protection insurance and within 6 months for all other types
of life insurance.
Reasons why a claim can take longer to finalise include:
- it takes a long time for an insurer to obtain evidence needed
to assess a claim from doctors, government agencies or third
- the insurer is having difficulties contacting the
- the claim is fraudulent, the insurer suspects fraud or the
claimant did not provide all required information to the insurer,
and further investigation is required.
3. Disputes per 100,000 lives insured - the
number of claims related disputes lodged during the period for
every 100,000 people insured.
Disputes about a claim may be lodged with the insurer, an
external dispute resolution scheme, a Court or Tribunal. Disputes
can occur for many reasons including disagreement or
- the claims decision
- the amount received for a claim
- the claims process
4. Policy cancellation rate - the percentage of
policies that were cancelled by the insurer or the person insured
during the period.
An insurer can cancel a life insurance policy if:
- the insurer can prove a claim is fraudulent
- the insured person does not pay their insurance premiums and
they have been told in writing by the insurer this may lead to
cancellation of the policy
An insured person can cancel a policy for many reasons
- they no longer need or can't afford a policy
- they change their mind and cancel during the cooling-off
- they purchase a new policy and cancel their old policy
Life insurance claims tool
Last updated: 22 Nov 2019