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The report, released on 30 October 2026 and reported across the insurance sector this week, examined claims data from the 2023-24 financial year across six life insurers. It focused on cases where insurers had said decision timeframes were affected by circumstances beyond their control, then considered whether insurer-managed parts of the process were still being handled effectively.
The findings are particularly relevant for workers relying on income replacement benefits. Insurers acknowledged they should have requested information earlier in 45 of the 116 income protection claims reviewed. For TPD claims, the equivalent figure was 42 of 67. The committee also found insurers did not always meet the communication and review commitments that apply when claims are delayed.
That does not mean every long claim is mishandled. Income protection assessments can involve medical reports, occupational evidence, rehabilitation updates and income verification, especially for sole traders or people with variable earnings. However, the inquiry shows that delay is not only caused by external evidence gathering; process design, correspondence and follow-up inside an insurer can also matter.
For consumers, the practical lesson is to treat income protection claims as a documentation process as well as a financial safety net. Useful steps may include:
The inquiry also has a broader industry message. Some insurers have reportedly responded with remediation, breach reporting and changes such as more targeted information requests, stronger technical support for claims staff and improved correspondence. The committee has indicated it will monitor whether these changes lead to better real-world claims handling.
The limitation is that the review looked at a selected set of longer-running claims and historical 2023-24 data, rather than every current claim in the market. Even so, it reinforces a simple point: for income insurance, policy wording is only part of the experience. Timely explanations, coordinated evidence requests and realistic updates can make a major difference when illness or injury has already disrupted household income.
Published:Thursday, 5th Nov 2026
Author: Paige Estritori
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45 out of 116 is a fair worry, especially when people are waiting on income protection to cover rent and groceries.