Key Person Insurance :: News
SHARE

Share this news item!

Insights from APRA and ASIC's 2025 Life Insurance Claims Report

Analyzing Trends in Claims and Disputes

Insights from APRA and ASIC's 2025 Life Insurance Claims Report?w=400

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.

The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) have jointly released the Life Insurance Claims and Disputes Statistics for the year ending December 31, 2025.
This comprehensive report offers valuable insights into the performance and challenges within the Australian life insurance sector.

According to the data, the total number of life insurance claims for regulated funds in 2025 was 117,219, marking a slight decrease of 1.2% from the previous year's figure of 118,605. This marginal decline suggests a relative stability in the volume of claims processed by insurers.

However, a notable concern highlighted in the report is the significant rise in disputed claims. In 2025, there were 11,207 disputed claims, representing a 13.7% increase from 9,851 disputes in 2024. This uptick underscores the need for insurers to address the underlying causes of disputes and enhance their claims management processes.

Disability Income Insurance (DII) and Total and Permanent Disablement (TPD) claims were particularly prominent, accounting for 88% of all disputes. These two categories also constituted 64% of the total claims made in 2025, indicating their substantial impact on the industry's dispute landscape.

The report further reveals that 56% of all claim disputes were related to group insurance within superannuation funds, while 33% involved individuals who had received financial advice. This distribution highlights the importance of clear communication and transparency in both group and individual insurance arrangements.

In response to these findings, APRA and ASIC have emphasized the necessity for life insurers to refine their product designs, improve disclosure practices, and ensure that premium increases are applied in accordance with policy terms and reasonable policyholder expectations. The regulators have acknowledged some progress in these areas but stress that further efforts are required to enhance consumer trust and satisfaction.

For policyholders, these statistics serve as a reminder to thoroughly understand their insurance policies, stay informed about any changes, and actively engage with their insurers to address concerns promptly. As the industry continues to evolve, ongoing collaboration between regulators, insurers, and consumers will be crucial in fostering a more transparent and responsive life insurance market.

Published:Sunday, 3rd May 2026
Author: Paige Estritori

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.

Share this news item:

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Insurance News

Compliance Warnings Put Key Person Cover Quality Back in Focus
Compliance Warnings Put Key Person Cover Quality Back in Focus
16 Sep 2026: Paige Estritori
Australia's life insurance sector has received another reminder that compliance quality is not an abstract issue. The latest Life Insurance Code compliance reporting points to persistent weaknesses in how insurers communicate with customers, manage claims milestones and maintain controls when service pressure rises. - read more
Why Operational Resilience Now Matters for Key Person Cover
Why Operational Resilience Now Matters for Key Person Cover
09 Sep 2026: Paige Estritori
Australia’s life insurance sector is entering a more demanding phase of operational risk oversight, with APRA’s CPS 230 standard now shaping how insurers manage service disruption, outsourcing, technology failures and critical business processes. While this may sound like a back-office regulatory issue, it has practical consequences for businesses that rely on key person cover to protect cash flow, debt commitments and continuity planning. - read more
Advice Reform Debate Puts Key Person Cover in Focus
Advice Reform Debate Puts Key Person Cover in Focus
02 Sep 2026: Paige Estritori
Australia’s life insurance sector is again focusing on the advice gap, with industry bodies and policy participants continuing to press for reforms that could make practical insurance guidance easier for consumers and businesses to access. The debate sits within the Federal Government’s broader financial advice reform agenda and is particularly relevant for business owners who need cover that is both affordable and properly structured. - read more
Latest APRA Data Points to a More Stable Life Insurance Sector
Latest APRA Data Points to a More Stable Life Insurance Sector
19 Aug 2026: Paige Estritori
APRA's latest quarterly life insurance statistics suggest Australia's life insurance sector is operating on a steadier footing, with profitability and capital strength remaining key themes across the market. For business owners, this is encouraging, but it should not be mistaken for a signal that premiums, underwriting or claims expectations will automatically become simpler. - read more


Life Insurance Articles

Protecting Your Startup: Understanding Keyperson Life Insurance Options
Protecting Your Startup: Understanding Keyperson Life Insurance Options
Keyperson life insurance is a special type of coverage designed to protect businesses against the financial impact associated with the loss of a key team member. Essentially, it acts as a safety net for companies, ensuring that the sudden loss or absence of crucial personnel doesn't jeopardize business operations or continuity. - read more
The Role of an Insurance Broker in Securing Keyperson Insurance Coverage
The Role of an Insurance Broker in Securing Keyperson Insurance Coverage
Keyperson insurance is a type of business insurance designed to protect companies from financial losses that may occur due to the sudden loss of a crucial team member. This insurance policy provides a financial safety net that companies can rely on in difficult times, ensuring continuity and stability. - read more
Key Person Insurance: Protecting Your Most Valuable Assets
Key Person Insurance: Protecting Your Most Valuable Assets
Key person insurance is a form of business insurance designed to help protect a company when a vital person, such as a business owner, executive or indispensable employee, dies, becomes incapacitated or is otherwise unable to continue in their role under the terms of the policy. It provides a financial safety net for the business during a difficult transition. - read more

Knowledgebase
Coverage:
The amount of risk or liability covered for an individual or entity by way of insurance services.