Rising Delays in Income Protection and TPD Claims Processing
Regulatory Concerns Over Timely Insurance Payouts
2
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
Recent findings from the Life Insurance Code Compliance Committee (Life CCC) have revealed a significant increase in delays related to income protection and Total and Permanent Disability (TPD) claims processing.
Violations of the industry's standards on timely income protection payments have surged by 67% in the 2024-25 period, raising concerns about the efficiency and reliability of insurers in supporting claimants during critical times.
The rise in delays is particularly concerning in the context of the growing number of Australians experiencing mental health conditions leading to disability claims. The Council of Australian Life Insurers (CALI) reported that mental health-related TPD claims now account for one-third of total claims paid, with a notable increase in claims among individuals in their 30s over the past decade.
For business owners and HR managers, these delays underscore the importance of selecting insurance providers with a proven track record of prompt claims processing. Ensuring that employees have access to timely financial support during periods of illness or injury is vital for maintaining workforce morale and financial stability.
To mitigate potential issues, businesses should regularly review their insurance policies and engage in open communication with providers about claims processing times and procedures. Additionally, providing employees with clear information about the claims process can help set realistic expectations and reduce stress during challenging periods.
As the industry faces increased scrutiny over claims processing delays, it is anticipated that insurers will implement measures to improve efficiency and compliance with industry standards. Staying informed about these developments can aid businesses in making informed decisions about their corporate life insurance offerings.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
A recent Fleet Auto News report has put a timely spotlight on one of the least glamorous but most important parts of fleet management: incident reporting. Many transport businesses still rely on paper forms, email trails and spreadsheets to record vehicle damage, accidents and minor incidents. Those methods may feel familiar, but they can leave operators with delayed reports, incomplete details and data that is difficult to use when a claim, audit or premium review arrives. - read more
Australia’s general insurance sector is edging closer to a major update to the rules that shape how insurers deal with customers, including small business owners and self-employed tradespeople. Financial Services Minister Daniel Mulino has signalled he wants meaningful progress on the review of the General Insurance Code of Practice, with the industry preparing a redrafted version for consultation. - read more
A fresh warning from Australian medical indemnity underwriter Tego has highlighted a risk that many businesses are only beginning to confront: artificial intelligence may not fit neatly inside existing insurance categories. As AI tools become embedded in diagnosis, administration, client advice, document drafting, fraud detection and customer service, the question is no longer simply whether a mistake occurred. It is also who made the decision, who controlled the system and which policy should respond. - read more
Victoria’s owners corporation reform process has put strata insurance commissions back under the microscope, after the state government opted to further examine an expert panel recommendation to ban certain financial benefits paid to owners corporation managers and related entities. - read more
This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.IMPORTANT: We act solely as an introducer and refer enquiries to licensed third-party brokers, insurers, and lenders. We do not provide financial product advice or credit assistance. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should independently verify the credentials and licensing of any adviser or provider you engage. Visit the ASIC website for further information.
Web design and construction by:
Clark Family Pty Ltd
A.C.N. 010 281 008 Copyright 2004 - all
rights reserved
No comments yet. Be the first to share your thoughts.