New TPD Insurance Products Aim to Improve Affordability and Sustainability

Acenda introduced the TPD Severity Option, which moves away from traditional occupational definitions. Instead, it assesses the severity of a claimant's impairment using medical frameworks such as Whole Person Impairment (WPI) measures for physical conditions and the Psychiatric Impairment Rating Scale (PIRS) for mental health claims. This approach allows for a more objective assessment of disability, focusing on the actual impairment rather than the claimant's occupation. The product is priced approximately 50% lower than traditional 'own occupation' TPD and around 25% below 'any occupation' pricing, offering a more affordable option for policyholders.

Zurich's Continuous Care Option shifts the focus from permanent inability to work to ongoing care needs. This product assesses whether a claimant requires continuous care, regardless of their employment status. It is priced around 70% less than standalone 'any occupation' TPD and 90% lower than 'own occupation' cover. Notably, Zurich has retained mental health eligibility within this product, introducing greater objectivity through the use of the PIRS.

TAL's TPD Support Option offers a traditional lump sum benefit for severe injuries and illnesses but modifies the assessment and payment structure for conditions with uncertain recovery trajectories. For certain mental health, fatigue, and functional disorders, eligible claimants receive 20% of the sum insured at 12-month intervals, provided they continue to meet eligibility criteria. This approach aims to improve long-term sustainability while keeping claimants connected to medical treatment and recovery pathways. The product delivers premium savings of around 20% for white-collar 'own occupation' clients, with smaller savings for blue-collar occupations.

These innovative products reflect a broader industry trend towards more sustainable and affordable TPD insurance solutions. By focusing on objective impairment assessments and ongoing care needs, insurers aim to provide better value to policyholders while ensuring the long-term viability of their offerings.