Major life insurer pays a record $2 billion in claims to members
Major life insurer pays a record $2 billion in claims to members | Insurance Business Australia
Life & Health
Major life insurer pays a record $2 billion in claims to members
Reason behind rise in payments revealed
Life & Health
By
Roxanne Libatique
TAL has paid a record $2 billion in claims to its customers during the six months from April 01, 2023.
TAL’s latest claims report revealed that 75% of the 32,456 members and their beneficiaries who have received payments in six months were living benefits – sums paid to customers living with or recovering from an injury or illness – up from 72% in the 2022/23 financial year.
The rise in living benefit payments was driven by an increase in income protection and total and permanent disability (TPD) claims related to mental health conditions, including post-traumatic stress disorder (PTSD) and depression (accounting for 23% of all claims), followed by injuries and fractures and cancer (each accounting for 15% of all claims).
Meanwhile, claims for mental health-related conditions have grown steadily over recent years, with mental health conditions surpassing cancer as the leading cause of claims in 2021/22.
TAL reaffirms commitment to improving claims process
Commenting on the latest claims results, TAL chief claims officer Jenny Oliver highlighted the company’s commitment to improving the claims process and the experience of its customers and super fund partners and their members, including:
digitalising the right services to boost the speed and efficiency of the claims process; and
increasing the integration between insurers, super fund partners, and administrators.
“Paying claims is the most important thing we do. Life insurance provides our customers with peace of mind when making important decisions like buying a home or starting a family and provides important financial protection during life’s biggest challenges,” Oliver said. “People often think that life insurance provides payments to families when a loved one passes away, but in reality, the large majority of claims are paid to help TAL customers as they recover from an illness or injury.
“Customers need the right tools to help them engage with their insurance cover or make a claim. That is why we have developed Claims Assist, where customers and super fund members can easily lodge and manage their claim, and Cover Assist, which allows them to check and change their cover.”
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