Life Insurer of the Year reports 97% claims payout rate

11 December 2024

Life Insurer of the Year reports 97% claims payout rate

New Asteron Life claims figures reveal the life insurer paid out on 97% of the Trauma, Life and Income Protection claims it received from 1 July 2023 through 31 June 2024, with more than 95% acceptance rates in each of the three categories of insurance.

In total Asteron Life paid out $112m in the year to June 2024, with $53.5m paid out in Life insurance, $34.1m in Trauma policy payments, and $24.4m in Monthly Income Protection cover claims payments.

Accidental injuries and accidents contributed significantly to customer claims in both Monthly Income cover and Trauma cover categories, with accident or injury being the leading cause of claims and making up 53% of the Monthly Income cover claims the insurer received in the period.

Asteron Life Executive Manager Claims and Customer Solutions, Seema Bangera, says the customers that claimed Monthly Income cover or Income Protection over the year had an average age of 45 years (female) and 44 years (male).

“When the unexpected does occur for our customers, and they face temporary or permanent loss of their incomes and livelihoods, the ability to claim on Income Protection Insurance and be provided a monthly payment to live on while they’re not receiving their regular salary or wage, is critical.”

The number of people buying Income Protection cover, and due to accident or injury needing to make claims on this insurance in their mid-forties, highlights the value these insurances provide in enabling people in their prime earning years to continue meeting their day-to-day living expenses.   This age group are often at the peak of their careers and experiencing key milestones in their personal and family’s lives, so a critical time to ensure they have income security.

Seema Bangera

The Asteron Life data also showed that while mental health claims are down slightly from their Covid peak they are still above pre-Covid levels, and the severity and duration of mental health claims remains high. The average duration of mental health claims was 8-12 months, while for other new claims the average duration was around 6-8 months.

Bangera says mental health has also become a secondary claim cause for many disability claims. 

“Return to work outcomes are directly related to early intervention and rehabilitation. This means the mental wellbeing of customers needs to be at the forefront for claims specialists and we need to ensure all clients have the necessary support building their personal resilience for their return-to-work journeys.”

About Asteron Life New Zealand

Asteron Life is a well-established and highly respected life insurer in New Zealand.

Asteron Life provides a range of life, trauma, income protection, total and permanent disability, and business cover to the New Zealand market. Its products are predominantly retail, sold through financial advisers as well as direct and group business.  Asteron Life recently won the Life Insurance Company of the Year award at the annual ANZIIF Insurance Industry, for the second year running. The company has won the title five times for its demonstrated high level of care for its customers, community and people.

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