The latest MoneySmart Life Insurance Claims Comparison Tool (covering 1 July 2024 – 30 June 2025) confirms that Australian life insurers continue to perform strongly, with consistently high acceptance rates and stable claim-processing times across all major cover types.
Industry-Average Claim Outcomes
| Cover Type | Channel | Industry-Average Claims Accepted % | Average Claim Time (months) |
| Death | Group Super | 98.4 % | 0.8 |
| Advised / Retail | 97.2 % | 1.3 | |
| Direct / Non-Advised | 92.9 % | 1.6 | |
| TPD | Group Super | 91.5 % | 3.6 |
| Advised / Retail | 82.9 % | 7.5 | |
| Income Protection (DII) | Group Super | 96.3 % | 1.4 |
| Advised / Retail | 94.4 % | 1.6 | |
| Direct / Non-Advised | 86.1 % | 1.7 | |
| Trauma | Advised / Retail | 86.0 % | 1.5 |
Source: MoneySmart – Life Insurance Claims and Disputes Statistics, updated October 2025.
https://moneysmart.gov.au/how-life-insurance-works/life-insurance-claims-comparison-tool
Data period: 1 July 2024 – 30 June 2025 (12 months).
Key Insights
- Consistency across the board: Most cover types continue to record acceptance above 90 %, with Death and Income Protection leading at 97–98 % and 94–96 % respectively.
- Advice makes a difference: Adviser-supported (retail) claims consistently outperform direct-only insurance on both acceptance and dispute outcomes, confirming the benefit of professional assistance.
- TPD variation explained: Group TPD averages ≈ 91 %, versus ≈ 83 % for advised retail. This likely reflects the smaller sums insured and simpler definitions typical of group arrangements, while retail policies often involve higher insured amounts and more complex eligibility.
- Claim timeframes: Death and IP claims finalise within 1–2 months; TPD takes longer at 3–7 months, and Trauma typically within 6 weeks.
- Direct gap remains: Direct-sold life insurance still shows lower acceptance (≈ 93 %) and higher dispute incidence, highlighting the importance of structure and support during claim lodgement.
Why This Matters
The data continues to validate the strength of the Australian life-insurance system – and the tangible value of professional advice in securing the best outcomes.
For advisers, it’s a reminder that well-designed and well-maintained cover leads to faster, smoother claims and fewer disputes.
Final Word
For risk specialists, these results underscore the continued importance of quality advice, documentation, and insurer partnership.
Australian life insurers are meeting their commitments, and adviser involvement remains a key factor in delivering smooth, successful outcomes for clients and their families.
Extra Notes
- Claim Accepted Rate: The percentage of finalised claims paid in full, including some ex gratia payments where fairness considerations applied.
- Average Claim Time: Measured from receipt of claim to decision communication, using APRA’s duration-bucket methodology.
- Distribution Channel: Refers to how the policy was arranged – through a financial adviser (retail), via a super fund (group) or direct with an insurer (non-advised). Differences largely reflect process and underwriting complexity, not willingness to pay.
P.S. If you’d like to see how these results have been explained for consumers, check out the companion article over at Life Insurance Guide:
👉 Do life insurers really pay out? The latest numbers say yes.
