Australian insurers admit 98.4% of death claims in 2025

Group ordinary business recorded the highest death claim admission rate in 2025.

Australian life insurers continued to approve most finalised claims in the year to 31 December 2025.

Death claims had the highest admission rates across most channels. Insurers admitted 98.4% of finalised death claims in group ordinary business, 98.1% in group super, 97.0% in individual advised business, and 92.2% in individual non-advised business, data from the Australian Prudential Regulation Authority showed.

For total and permanent disability (TPD) admission rates were lower. Insurers admitted 90.2% of finalised TPD claims in group super, 89.0% in group ordinary, 82.3% in individual advised, and 68.8% in individual non-advised business.

Disability income insurance claims were admitted at 97.5% in group ordinary, 96.1% in group super, 94.3% in individual advised, and 85.8% in individual non-advised business. Funeral claims in individual non-advised business had an admission rate of 99.7%.

Claim processing times varied by cover type. Funeral claims were the fastest, with an estimated average processing time of 0.6 months. 

Death claims took an estimated 1.0 month on average, whilst accident claims took 0.9 months. TPD claims took the longest, with an estimated average processing time of 3.8 months.

Trauma claims took 1.4 months, whilst disability income insurance claims also averaged 1.4 months.

Most death claims were processed within two weeks. APRA’s data showed 76.2% of death claims were finalised within that period. 

For TPD claims, only 21.8% were finalised within two weeks, whilst 33.5% took more than two months but less than six months.