Claim Statistics - Claims Data - Disability Insurance - Income Protection and TPD

The Australian insurance regulator ASIC has routinely produced insurance claim statistics for Life, Trauma, Disability and Income Protection Insurance since 2018.  The data provides a breakdown, by insurance type, of the rate of claims that are accepted, the number of claims in dispute and the average time taken to accept or decline a claim.

By contrast, the New Zealand insurers do not provide (and are not required to provide) this claims information by our Regulators. This is despite concerns raised by the RBNZ and FMA about poor conduct and outcomes for consumers in this sector.

When approached in 2016 by Jenée Tibshraeny of interest.co.nz most insurers declined to provide any claims data.

There is some data to suggest that the decline rate of Income Protection cover in New Zealand is as high as 25%.

The Australian data shows a high decline rate for Disability insurance including Total Permanent Disability( TPD) and Income Protection cover. In particular Australians have issues with limited TPD cover provided by their superannuation providers. To assist consumers ASIC has launched the MoneySmart Website that provides insurance statistics in an easy consumer-friendly manner. This allows consumers to compare insurers, by insurance type, on their claims track record.

I believe that New Zealand insurers need to publish the same data. I have been involved in a series of TPD, Income Protection and Death claims that have taken in excess of 12 months to reach a claim decision. Without the transparency offered by this type of data, insurers will continue to delay and decline Life, Trauma, Disability and Income Protection claims.