Insurer Reports Strong Demand for Health and Recovery Benefits
TAL has reported distributing $4.7 billion in life insurance claims over the 12 months to March 31, 2025. The insurer supported approximately 54,000 customers and their families during this period, averaging close to $90 million in weekly payments.
Income Protection and Mental Health Lead Benefit Outflows
Of the total amount paid, 74% related to living benefit policies such as income protection and total and permanent disability (TPD) cover. Mental health-related claims made up the largest proportion at 21%, with cancer and physical injuries accounting for 17% and 15%, respectively.
TAL chief claims officer Georgina Croft said the insurer’s focus remains on assisting customers as they manage life-altering health events. “We insure people, helping them protect their families and standing with them through life’s toughest moments,” she said. Croft added that digital enhancements have allowed TAL to provide faster claims processing while maintaining a human-centric service model.
Expanded Access to Recovery and Preventative Services
In addition to financial support, TAL reported broader engagement with its health services platform, Health for Life, which provides access to recovery and wellness programs. Dr. Priya Chagan, general manager of health services, said the company partnered with more than 30 providers to deliver recovery support. “Last year, our claims support and recovery programs achieved an 80% return-to-health and work success rate, helping thousands of Australians get back to living their lives,” she said.
The platform also expanded its preventative care efforts, with hundreds of thousands accessing tools and incentives promoting early health intervention. “We improved access to premium discounts for customers taking preventative health tests and launched new online tools to help people take control of their health by identifying risks early and encouraging positive health practices,” Chagan said.
Awareness and Coverage Trends in the Broader Market
TAL’s results coincide with findings from the latest NobleOak Life Insurance Pulse Report, which noted that 60% of Australians now have some form of life insurance, up from 55% in the previous year. Despite this rise, the report identified a widespread lack of understanding regarding certain policy types. Only 30% of respondents correctly identified the meaning of “fully underwritten” life insurance, although the majority held policies.
Regulatory Data Signals Shifting Claims and Dispute Dynamics
Recent updates from the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) showed variation in life insurance claims outcomes across product types. Group superannuation death cover continued to lead with a 99% claim admittance rate, while individual advised TPD policies had the lowest at 84%. Most income protection and trauma claims were accepted at rates above 85%.
Timelines also varied. Death benefit claims were generally processed within two weeks, while TPD claims took up to four months on average, with more than one-third finalized between two and six months. Disputes remained most prevalent in direct-purchased income protection policies, with rates hitting 410 disputes per 100,000 lives insured. Group policies showed significantly fewer disputes. Most disputes – over 80% – were resolved within 45 days, although TPD disputes took longer to conclude. Around 5% to 9% of disputes resulted in overturned decisions.
