APRA life/risk data short on death benefit detail | Australian Markets

Some main superannuation funds have been named and shamed over their tardiness in handling death benefit claims, however the latest APRA life insurance coverage claims and disputes data has didn’t individually detail how long funds take to course of claims.

The APRA data overlaying the 12 months to 31 December, 2024, supplies an overview of claims processing however combines group cowl through superannuation with different channels comparable to particular person suggested and particular person non-advised.

And the underside line is that the image created round claims processing reveals that 77% of death claims are processed within two weeks, 17% are processed someplace between two weeks and two months and solely 2% take more than 12 months.

This compares to the claims handling across the more advanced complete and everlasting disablement (TPD) the place 19% had been dealt with within two week, 26% between two weeks and two months and 55% taking more than six months.

What the APRA data additionally show is comparatively strong efficiency of particular person suggested insurance policies and insurance coverage inside superannuation with respect to death, TPD and incapacity income insurance coverage.

It ascribed a 97% admittance fee for death claims primarily based on particular person suggested insurance policies, and 99% for group super.

Where TPD insurance coverage was involved particular person suggested claims gained an 84% admittance fee, in comparison with 82% for group super and 81% for particular person non-advised.

The APRA data confirmed the dominance of TAL within the group insurance coverage superannuation space accounting for 44.9% market share with respect to death cowl and 40.2% with respect to TPD with the following largest participant being AIA Australia.