MEDIA RELEASE - Wednesday 29 July 2020 - LIFE INSURANCE AWARENESS WEEK: DATA DAY - DETAILED DATA REVEALS TOP CAUSES OF CLAIM FOR THE INDUSTRY

Oct 3, 2026

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A Financial Services Council (FSC) Life Insurance Awareness Week release highlights 2019 life insurance claims through detailed KPMG analysis updated every six months. It reports $12.06bn paid to 101,821 Australians, with cancer the top death-cover cause (43%) and mental disorders leading TPD claims (25%). For income protection, accidents are most common (33%), while trauma/critical illness claims are dominated by cancer (58%). It also stresses how behind each datapoint is financial support for families.

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LIFE INSURANCE AWARENESS WEEK: DATA DAY

2019 whole-market claims summary

Claim causes by insurance type

Industry context and key messages

MEDIA RELEASE Wednesday 29 July 2020 LIFE INSURANCE AWARENESS WEEK: DATA DAY – DETAILED DATA REVEALSTOP CAUSES OF CLAIM FOR THE INDUSTRY 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 $12 billion was paid out to 101,821 Australians; • For death cover there were 13.4 million covers in force, 97 per cent of lodged claims were paid and the highest cause of claim was cancer at 43 per cent; • For Total and Permanent Disability (TPD) there were 11.1 million covers in force, 90 per cent of lodged claims were paid and the highest cause of claim was mental health at 25 per cent; • For Income Protection/Disability Income there were 5.8 million covers in force, 95 per cent of lodged claims were paid and the highest cause of claim was accidents at 33 per cent; • For Trauma insurance there were 1.1 million covers in force, 86 per cent of lodged claims were paid, and the highest cause of claim was for cancer at 58 per cent; Mr Kirwan said: “During life insurance awareness week we encourage all Australians to check what life insurance cover they have-be aware of what you have and what you’re paying for. Give your superannuation trustee or life insurance company a call today so you and your family are secure no matter what happens.” -Ends- LIFE INSURANCE CLAIMS DATA FOR 2019 | Whole Market | Life, TPD, IP, Trauma, Funeral, Accident, and CC Insurance | 34.9 million covers in force | | --- | --- | --- | | Period of Report | Number of claims paid | Amount paid ($m) | | 12 months to 31 December 2019 | 101,821 | $12,060 | | Life Insurance
Pays a lump sum on your death or the diagnosis of a terminal illness. | | 13.4 million covers in force | | --- | --- | --- | | Number of claims paid | Acceptance rate | Amount paid ($m) | | 19,974 | 97% paid | $3,644 | | Top 5 causes of claim | % of total claims paid | Amount paid ($m) | | Cancer
Accident Circulatory System Abnormal Clinical Findings Nervous System | 43%
17%
14%
10%
3% | 1,580.7
630.9
507.2
379.6
121.6 | | Total and Permanent Disability (TPD) Insurance
Pays you a lump sum if you are not expected to work ever again due to illness or injury. | | 11.1 million covers in force | | --- | --- | --- | | Number of claims paid | Acceptance rate | Amount paid ($m) | | 17,266 | 90% paid | 2,579 | | Top 5 causes of claim | % of total claims paid | Amount paid ($m) | | Mental Disorders Musculoskeletal System Accident Nervous System Cancer | 25%
22%
15%
12%
9% | 649.2
575.4
374.2
311.5
240.3 | | Income Protection (IP) / Disability Income (DI) Insurance
Pays you an income after an initial waiting period if you are not wel

FAQs

What did the FSC and KPMG report for 2019 life insurance claims?

They reported that during 2019 more than $12 billion was paid out to 101,821 Australians and their families, based on analysis of life insurance claim causes updated every six months.

Which cause of claim was highest for death cover in 2019?

Cancer was the highest cause of claim for death cover, accounting for 43% of lodged claims paid.

What were the top causes of claim for TPD, Income Protection, and Trauma insurance?

TPD: mental health/mental disorders at 25%. Income Protection/Disability Income: accidents at 33%. Trauma/Critical Illness: cancer at 58%.

Oct 3, 2026

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