Life Claims Review Highlights the Cost of Slow Communication

The inquiry, released on 30 October 2026 and reported this week, examined claims data from the 2023-24 financial year across six life insurers. It focused on claims where insurers had treated delays as being affected by circumstances beyond their control, then looked at whether the parts of the process still controlled by insurers were handled as well as they could have been.

The findings are important because complex claims do sometimes require medical, employment or financial evidence that takes time to obtain. However, the review indicates that avoidable process issues can still add pressure. Insurers acknowledged that they should have requested information earlier in 42 of the 67 TPD claims reviewed and 45 of the 116 income protection claims reviewed.

For consumers, the message is not simply that every delayed claim is mishandled. It is that the claim journey should be understandable. A claimant should generally be told what information is required, why it is needed, who is responsible for supplying it and what may happen next. When requests arrive late or in stages, the person waiting on a decision may face extra uncertainty at precisely the time their household budget is under strain.

The review also sits alongside broader concern about claim disputes and service standards in the life insurance sector. In recent years, regulators and code monitors have repeatedly pointed to the basics of administration, communication and timeliness as central to consumer confidence. That matters because the value of cover is tested most clearly when a claim is lodged, not when a policy is first purchased.

The committee noted that some insurers have already taken steps in response, including more targeted information requests, stronger technical support for claims managers, improved correspondence and closer monitoring of longer-running files. Those changes will need to prove themselves in practice, particularly where claims involve multiple medical reports, superannuation trustees or changing work capacity.

Households reviewing life insurance, TPD or income protection arrangements may wish to look beyond the headline benefit amount. Policy definitions, evidence requirements, ownership through superannuation, waiting periods, exclusions and claims processes can all affect how cover works in real life. Keeping policy documents, medical records and contact details current can also reduce friction if a claim ever needs to be made.