Life Claims Review Puts Communication Back in Focus

The review, 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 cases where insurers had treated delays as affected by circumstances beyond their control, then tested whether insurer-managed parts of the process were still handled as well as they could have been.

The figures are significant because they point to practical gaps rather than simply complex claims. Insurers acknowledged that information should have been requested earlier in 42 of the 67 TPD claims reviewed and 45 of the 116 income protection claims reviewed. The committee also identified inconsistent communication and review practices when claims moved outside ordinary decision timeframes.

For households and small business owners, the broader lesson is that the claims process is not just a back-end administrative issue. When a claim involves medical evidence, occupational information, financial records or superannuation fund processes, delays can place real pressure on cash flow and wellbeing. Clear requests, realistic timelines and regular updates can make a material difference even where the final decision is not immediate.

The findings also sit within a larger reform period for life insurance standards. The sector is already working through recommendations from the independent Life Insurance Code review, including proposed improvements to claims handling, communication, vulnerability support and mental health-related processes. The latest inquiry adds practical evidence about where those standards may need to be embedded in day-to-day claims management.

Consumers cannot control every part of a claim, but they can reduce friction by keeping policy documents, medical records, employment information and correspondence organised before they are needed. It may also help to ask insurers to confirm outstanding information in writing, explain how timeframes apply, and clarify whether any delay is due to external evidence or an insurer-controlled step.

The committee says some insurers have already responded with remediation, breach reporting and changes to claims-handling procedures, including more targeted information requests and closer monitoring of longer claims. The key test now is whether those improvements become standard practice across the sector, not just corrective action after a review.