TAL has reported that 78% of its claims during the six months ending Sep. 30, 2024, were for living benefits provided to Australians unable to work due to illness, injury, or permanent disability.
The figure represents payments to approximately 28,450 customers, an increase from 75% in the same period last year, when around 24,340 claims were lodged.
The life insurer distributed $2.3 billion in claims payments across all categories during this period, assisting over 36,200 policyholders and their families.
A significant portion of TAL’s living benefit claims stemmed from income protection (IP) and total and permanent disability (TPD) policies.
Claims associated with mental health issues, including post-traumatic stress disorder and depression, comprised 29% of total claims, up from 23% the previous year. Other common reasons included injuries and fractures (18%) and musculoskeletal conditions (16%).
TAL chief claims officer Georgina Croft (pictured) commented on the insurer’s role in supporting individuals during periods of financial and health uncertainty.
“Life insurance offers more than financial support when a loved one passes away. In the past six months, TAL benefit payments provided an important safety net to more than 28,000 Australians unable to work due to injury or illness,” she said.
In addition to financial assistance, TAL emphasised its commitment to recovery-focused services. These include connecting claimants to healthcare providers and offering tools to promote physical, mental, and emotional rehabilitation.
TAL highlighted that its in-house health experts work to speed up claims assessments and connect customers with relevant services such as mental health treatment, occupational rehabilitation, and cancer care.
Kate Tran, TAL claims recovery and support specialist, explained the importance of early intervention during the claims process.
“By connecting a person with the services they need early in the claims process and removing the financial burden of paying for them, we can help customers on a path to recovery faster,” she said.
TAL also highlighted the usage of its digital mental health tool, Headlight, which had more than 3,200 visits during the reporting period. The tool, developed in partnership with UNSW, helps users assess and manage their mental health through tailored resources.
The insurer reported the following claims distribution for the April to September 2024 period:
Despite TAL’s reporting on claim payments, industry-wide data points to a disparity in Australians’ insurance priorities.
A study by the Council of Australian Life Insurers (CALI) revealed that while 79% of Australians have motor vehicle insurance, only 34% hold life insurance policies.
CALI chief executive Christine Cupitt attributed this gap to limited access to financial advice, noting that the underinsurance trend leaves many without adequate protection in times of need.
As cost-of-living pressures persist, life insurance policies are often among the first to be reduced or cancelled, CALI’s research indicated. Many Australians prioritise insuring physical assets, such as vehicles and homes, over protecting their income or financial stability.
