Invest
What does age and occupation have to do with disability insurance?
Occupation, smoking status and an individual’s age have all been revealed as key factors influencing an Australian worker’s likelihood of needing to make a disability or life insurance claim.

What does age and occupation have to do with disability insurance?
Occupation, smoking status and an individual’s age have all been revealed as key factors influencing an Australian worker’s likelihood of needing to make a disability or life insurance claim.

A joint study from consulting firm KPMG and the Financial Services Council (FSC) has revealed that Australian life insurance companies are paying out record amounts in disability claims, which provides Australian workers with replacement income when they are unable to work due to illness or injury.
Between 2014 and 2018, life insurers paid out $4.9 billion in retail disability income claim benefits – a total that was double the average annual payment of the preceding five-year period (2009-2013).
So, what are the top four causes of disability insurance claims?
- Accidents (38 per cent)
- Musculoskeletal (18 per cent)
- Mental disorders (11 per cent)
- Cancer (10 per cent)
While a significant rise in payouts occurred across all claim categories, KPMG actuarial partner Briallen Cummings said the increase in mental health claims was especially notable, with total claims benefits for mental health conditions having “more than doubled in the past five years”.
“More people are now focusing on their mental wellbeing, which we see in people taking longer to return to work after a mental health event.”
According to Ms Cummings, mental health claims do tend to take longer to be reported and assessed than other causes of claims, “but the payout rate by insurers is high and reflects the importance of our community in supporting these individuals in a return to health and work”.
A deep-dive on the data revealed that a 45-year-old male blue-collar worker is approximately 4.5 times more likely to make a claim than his white-collar counterpart.
KPMG also flagged that a 45-year-old male smoker is 31 per cent more likely to make a claim than his non-smoking counterpart.
Age, the other major factor influencing claims, also had a marked impact on a person’s likelihood of making a claim: A 60-year-old male non-smoker is 27 per cent more likely to make a claim than a 45-year-old.
The study, which considered claims lodged with 10 Australian life insurers, also showed that the average length of time for a person being on a claim had increased by 36 per cent by 2018, compared with time periods of 2013 data.
Did you enjoy this article? You might also be interested in:
About the author

About the author


Insurance
‘Shocking and horrifying’ outdated stigmas deny Aussies access to insurance
Outdated mental health stigmas are seeing young Australians being denied access to health coverage, new research has revealed. ...Read more

Insurance
440,000 Australians now eligible for ANZ insurance class action
More than 440,000 Australians have received notice from the Federal Court advising that they may be eligible to be part of Slater and Gordon’s consumer credit class action against ANZ and insurers O...Read more

Insurance
Misleading travel insurance claims fly Allianz into trouble
The corporate regulator has revealed that it is taking Allianz Australia’s insurance arm to court for the misleading sale of travel insurance through Expedia websites. ...Read more

Insurance
What’s wrong with disability insurance?
Disability insurance needs to be “simpler and cheaper” for all Australians, with a focus on return to health and work, a taskforce has found. ...Read more

Insurance
5 reasons landlord insurance is a worthwhile investment
Peace of mind is just one of the reasons a landlord should stay up to date with insurance, even as the COVID-19 crisis causes people to more closely scrutinise their finances. ...Read more

Insurance
3 financial institutions face class action over insurance advice
A class action lawsuit has been filed in the Federal Court against three large financial institutions, which have been accused of breaching its best interests duty obligations. ...Read more

Insurance
Over 650,000 members lose insurance from early super
More than 650,000 super fund members are projected to lose their life insurance as a result of the government’s early release scheme, new research has found. ...Read more

Insurance
Fool-proofing your insurance with a financial adviser
Did you know advised individuals are more likely to be successful when making an insurance claim? Here’s why. ...Read more

The continued property boom, ethical investing and engaging with your super fund
Listen now

Property spike, bitcoin rally, Musk’s Twitter power and the super debate
Listen now

Our expert panel addresses top concerns in personal wealth creation
Listen now

Capitalising on the COVID-19 pandemic
Listen now

Insurance
‘Shocking and horrifying’ outdated stigmas deny Aussies access to insurance
Outdated mental health stigmas are seeing young Australians being denied access to health coverage, new research has revealed. ...Read more

Insurance
440,000 Australians now eligible for ANZ insurance class action
More than 440,000 Australians have received notice from the Federal Court advising that they may be eligible to be part of Slater and Gordon’s consumer credit class action against ANZ and insurers O...Read more

Insurance
Misleading travel insurance claims fly Allianz into trouble
The corporate regulator has revealed that it is taking Allianz Australia’s insurance arm to court for the misleading sale of travel insurance through Expedia websites. ...Read more

Insurance
What’s wrong with disability insurance?
Disability insurance needs to be “simpler and cheaper” for all Australians, with a focus on return to health and work, a taskforce has found. ...Read more

Insurance
5 reasons landlord insurance is a worthwhile investment
Peace of mind is just one of the reasons a landlord should stay up to date with insurance, even as the COVID-19 crisis causes people to more closely scrutinise their finances. ...Read more

Insurance
3 financial institutions face class action over insurance advice
A class action lawsuit has been filed in the Federal Court against three large financial institutions, which have been accused of breaching its best interests duty obligations. ...Read more

Insurance
Over 650,000 members lose insurance from early super
More than 650,000 super fund members are projected to lose their life insurance as a result of the government’s early release scheme, new research has found. ...Read more

Insurance
Fool-proofing your insurance with a financial adviser
Did you know advised individuals are more likely to be successful when making an insurance claim? Here’s why. ...Read more