Which Life Insurers Approve the Most Claims in Australia?
- Covermate Life
- 5 days ago
- 3 min read
Why this matters if you’re choosing life cover
When you take out life insurance, it’s not just about the premium or extras — it’s about whether your insurer will actually pay the claim when it counts.
At Covermate Life, we believe reliability matters most. A life insurance policy is a promise, and that promise is only as strong as the insurer’s claims history.
So, how do Australia’s life insurers perform? Let’s look at the latest data and trends.
Australia’s Life Insurance Claims Snapshot
Every year, the Australian Prudential Regulation Authority (APRA) and the Australian Securities & Investments Commission (ASIC) release detailed data on how insurers perform when it comes to paying claims.
Here’s what the latest 2024 statistics show:
Type of Cover | Average Claim Acceptance Rate (2024) | Average Time to Decide |
Life (Death) | 96.9% | Around 1.2 months |
Total & Permanent Disability (TPD) | 83.8% | Around 5.1 months |
Trauma (Critical Illness) | 85.4% | Around 2.3 months |
Income Protection (Disability Income) | 95.0% | Around 1.8 months |
(Source: APRA/ASIC Life Insurance Claims and Disputes Statistics, 2024)
In short — most Australian life insurers pay the vast majority of genuine claims, but the differences become more noticeable with TPD and Trauma cover.
Which Australian Life Insurers Have the Highest Claim Approval Rates?
While APRA’s data aggregates industry-wide results, insurer-specific figures show some clear leaders.
According to APRA and analysis from Insurance Watch and MoneySmart:
TAL Life Limited consistently shows among the highest acceptance rates for Death and Income Protection claims.
AIA Australia and Zurich Australia also perform strongly, with consistently high payout rates across multiple product lines.
MLC Life Insurance and ClearView generally maintain competitive acceptance ratios and fast average decision times.
Policies sold through financial advisers or brokers (known as “advised policies”) tend to have higher acceptance rates than direct-to-consumer policies — largely due to better upfront disclosure and clearer product understanding.
Why These Differences Matter
Two insurers might look identical on premium and coverage — but if one has:
a 97% claim approval rate vs another’s 90%, or
an average decision time of 4 weeks vs 6 months
— that’s a major real-world difference for your family when you need the support most.
What to Look For When Comparing Life Insurers
When assessing life cover in Australia, consider:
Claim acceptance rate – Does the insurer pay the majority of claims?
Decision time – How long does the insurer take to finalise claims?
Dispute rate – How often are claims decisions challenged or overturned?
Policy definitions – Are terms like “disability” or “trauma” clearly defined?
Distribution channel – Adviser-sold policies tend to have stronger claim outcomes.
Covermate Life’s Take
At Covermate Life, we compare Australia’s leading life insurers including TAL, AIA, Zurich, MLC, ClearView, and OnePath — not just on price, but on reliability and claims performance.
Our view:
Look for insurers with 95%+ approval for Death and Income Protection.
Expect 80–90% for TPD or Trauma cover depending on the product.
Value isn’t just in the cheapest premium — it’s in the insurer who pays fairly and quickly when life doesn’t go to plan.
Key Takeaways
✅ Most Australian life insurers pay out — but some are clearly faster and more consistent.
✅ Adviser-based policies generally have higher acceptance rates.
✅ Don’t just compare premiums — look at claims statistics, definitions, and timeframes.
✅ Review your policy regularly as your needs and insurer performance may change.
Next Steps
Use ASIC’s MoneySmart Comparison Tool to review current insurer data.
Talk to Covermate Life about comparing your existing policy or finding a new one that ranks highly on claims approval rates and reliability.