Australian life insurer Acenda has launched a new TPD Severity option within its total and permanent disability (TPD) cover, developed with financial advisers to let customers combine TPD Severity with other coverage levels for a more tailored policy.
By Roxanne Libatique – Insurance Business Magazine
The product responds to a sharp rise in TPD claims, notably linked to musculoskeletal and mental health conditions. Acenda cites internal analysis showing retail TPD claims up 166% for musculoskeletal issues and 171% for mental health from 2018 to 2023, in line with broader industry data.
Using established medical impairment benchmarks, the TPD Severity option assesses both the severity and permanence of physical and mental health conditions, aiming to bring greater clarity and consistency at claim time while maintaining access and affordability.
Acenda is providing extra education and resources to advisers, positioning the option as a complement to its existing TPD range and as a better fit for changing patterns of work, recovery and diagnosis.
