Stress the most common reason for group IP claims

A review of the group insurance industry by Rice Warner – which consisted of sourcing data from 16 large superannuation funds – has uncovered greater insights into why Australian workers make claims, especially on income protection.

Rice Warner found that stress and mental health featured as the most common reason for claiming against an income protection policy for middle-aged people.

For workers over the age of 50, however, musculoskeletal problems were the most prominent reason for making an income protection claim.

The researcher also found that workers who make an income protection claim within six months of noticing an illness or disability are more than 40 per cent more likely to return to work within a year.

For those who made a claim in the second six months, however, their return to work was longer.

Stress also featured as a reason for fund members aged 30 to 39 making a claim on total and permanent disability (TPD).

The largest reason for making a TPD claim within the group industry was musculoskeletal issues, representing one third of all claims for all super fund members.

Among younger fund members, however, the main reasons for making a TPD claim were accidents, poison and crime.