Media release
29 September 2025
New TPD Severity Cover to provide greater choice and stability for Australians
Acenda has unveiled an innovative new Total Permanent Disability (TPD) Severity insurance benefit that provides more flexibility, clarity and choice for Australians who are unable to work due to severe injury or illness.
Traditional TPD insurance provides a payment in the event someone becomes totally and permanently disabled and can never work again in either their own or any occupation.
Acenda’s new TPD Severity option offers customers more flexibility and choice and sits alongside the existing TPD options. This allows advisers to tailor cover to their clients’ individual needs by mixing and matching the levels of TPD Severity with the customer’s preferred level of other TPD cover.
Gerard Kerr, Chief Executive, Individual Insurance for Acenda, said the enhanced benefit had been designed with input from advisers and reflects the evolving needs of Australians, including a need for greater stability in the cost of TPD insurance.
“TPD insurance provides Australians with valuable financial protection in the event of serious illness or injury. However, the way we work, recover and diagnose medical conditions have evolved significantly since TPD insurance was first established many decades ago and our products haven’t evolved with them,” he said.
“As an industry we need to step up and provide alternative TPD solutions to advisers and their clients to ensure they can continue to access this valuable disability cover that meets that need. We’ve worked closely with advisers to design a solution that reflects the realities of modern medicine and employment, while helping more Australians access meaningful, affordable protection.
“Acenda is taking the lead with the launch of our new TPD Severity option, which provides customers with greater options in structuring TPD cover, complementing our existing any and own offerings and bringing greater affordability to more Australians.”
The launch comes amid a surge in TPD claims in recent years, particularly for musculoskeletal and mental health conditions. Between 2018 and 2023, Acenda reported a 166 per cent increase in retail TPD claims for musculoskeletal conditions. During the same period, Acenda reported a 171 per cent increase in retail TPD claims for mental illness.
These conditions can vary significantly in their level of severity and while they can be long-term and permanent, they can also be episodic with a longer period of recovery and difficult to assess under traditional TPD definitions.
This consistent rise in claims over recent years has also resulted in higher TPD premiums across the industry, making cover increasingly unaffordable for many Australians and further threatening ongoing access to this valuable disability cover.
TPD Severity uses established medical impairment benchmarks to assess the degree and permanence of disability, for both physical and mental health conditions, bringing greater objectivity and consistency to the claims process.
“TPD Severity provides customers and advisers with more clarity and consistency when making a claim by using established medical benchmarks to assess the severity and permanency of an injury or illness,” Mr Kerr said.
“We will work with advisers to ensure they are supported in recommending the best options for their customers through comprehensive education and resources.
“TPD Severity is a modern solution to a modern problem, delivering customers more affordable premiums while still offering access to meaningful protection that gives Australians the confidence to take life on.”
Traditional TPD insurance provides a payment in the event someone becomes totally and permanently disabled and can never work again in either their own or any occupation.
Acenda’s new TPD Severity option offers customers more flexibility and choice and sits alongside the existing TPD options. This allows advisers to tailor cover to their clients’ individual needs by mixing and matching the levels of TPD Severity with the customer’s preferred level of other TPD cover.
Gerard Kerr, Chief Executive, Individual Insurance for Acenda, said the enhanced benefit had been designed with input from advisers and reflects the evolving needs of Australians, including a need for greater stability in the cost of TPD insurance.
“TPD insurance provides Australians with valuable financial protection in the event of serious illness or injury. However, the way we work, recover and diagnose medical conditions have evolved significantly since TPD insurance was first established many decades ago and our products haven’t evolved with them,” he said.
“As an industry we need to step up and provide alternative TPD solutions to advisers and their clients to ensure they can continue to access this valuable disability cover that meets that need. We’ve worked closely with advisers to design a solution that reflects the realities of modern medicine and employment, while helping more Australians access meaningful, affordable protection.
“Acenda is taking the lead with the launch of our new TPD Severity option, which provides customers with greater options in structuring TPD cover, complementing our existing any and own offerings and bringing greater affordability to more Australians.”
The launch comes amid a surge in TPD claims in recent years, particularly for musculoskeletal and mental health conditions. Between 2018 and 2023, Acenda reported a 166 per cent increase in retail TPD claims for musculoskeletal conditions. During the same period, Acenda reported a 171 per cent increase in retail TPD claims for mental illness.
These conditions can vary significantly in their level of severity and while they can be long-term and permanent, they can also be episodic with a longer period of recovery and difficult to assess under traditional TPD definitions.
This consistent rise in claims over recent years has also resulted in higher TPD premiums across the industry, making cover increasingly unaffordable for many Australians and further threatening ongoing access to this valuable disability cover.
TPD Severity uses established medical impairment benchmarks to assess the degree and permanence of disability, for both physical and mental health conditions, bringing greater objectivity and consistency to the claims process.
“TPD Severity provides customers and advisers with more clarity and consistency when making a claim by using established medical benchmarks to assess the severity and permanency of an injury or illness,” Mr Kerr said.
“We will work with advisers to ensure they are supported in recommending the best options for their customers through comprehensive education and resources.
“TPD Severity is a modern solution to a modern problem, delivering customers more affordable premiums while still offering access to meaningful protection that gives Australians the confidence to take life on.”