10 Jun Women More Likely to Experience Disability from Illness
Women aged over 45 are nearly twice as likely to be disabled from sickness as men, new research has shown.
Produced by the Financial Services Council (FSC) and KPMG Australia, the research looked at the likelihood of disability insurance claims across a range of client demographics. In particular, the report found that 45 year old females are 94% more likely to make a claim due to sickness than their male counterparts, but 22% less likely to make a claim due to accident than males in white collar occupations.
Other key findings from the research include:
- A person who has held a policy for 10 years or more is 50% more likely to make a claim than a person who has held a policy for less than 1 year
- Male white collar smokers are 50% more likely to claim due to sickness than male white collar non-smokers
- Smokers are 12% less likely to return to work than non-smokers
The data forms part of a new Disability Income Table (ADI 2007-2011), an actuarial tool used by life companies to determine policy pricing. The Disability Income Table was last updated 20 years ago, and comprises extensive data and analysis based on more than 30,000 claims made between 2007 and 2011. For the first time, the impact of policy duration, benefit period and cause of claim (such as mental illness, nervous disorder and musculoskeletal) are quantified within the table.
KPMG Actuarial Partner, Briallen Cummings, said: “This new report includes data and analytics insights that were unimaginable 20 years ago, and which life companies will benefit hugely from. Using old data impacted their ability to fully comprehend the real drivers of claims. We believe this table will enable the industry to make much better allowance of these factors for pricing and reserving, which should in turn improve consumer experience.”
FSC CEO, Sally Loane, added that the new table would give life companies a deeper understanding of a range of key issues, and provide richer evidence for writing policies.