This quick article is just to give you some simple information on the level of claims that are paid within the life insurance industry, and the companies that we work with.
I often hear the unfounded opinion of those who have heard ‘stories’ that insurers dont pay out. The fact of the matter is that the Life Insurance industry pays out more than $90Million a WEEK! The average insurer we work with will issue over $10 Million per week in claims.
TAL’s claim statistics can be found HERE
The life insurance industry paid out over $5 billion in claims in 2012, representing a steady increase over the past four years, as reported by the Australian Prudential Regulation Authority (APRA).
The latest APRA Quarterly Life Insurance Performance statistics showed that the total life insurance market paid $5.4 billion in death and disability claims over the year ending December 2012. This is an increase of nearly $600 million on the 2011 figure, and $1 billion more than was paid out in 2010.
In the quarter ending December 2012, the life insurance industry paid out $1.3 billion in claims, compared with $1.4 billion in the previous quarter. The industry remains in good shape, despite the significant dollars paid out in claims, with the annual net profit after tax for the year ending December 2012 reaching $3 billion.
Individual risk products achieved a net profit of $163 million, and group risk products made $24 million.
This just shows that you can be confident in Australia’s Life Insurance industry. Simply ask one of our advisers for advice on your personal protection.
Article: Paul Davies