Total and Permanent Disability (TPD) claims continue to present challenges across the life insurance industry. Rising claim volumes and increasing claim complexity are placing greater demands on insurers, rehabilitation providers and claims professionals. In some sectors, claim volumes have increased by more than 700%, resulting in more stakeholders than ever before being involved in TPD assessments.
As claim volumes increase, there has also been growing demand for Forensic Vocational Assessments (FVAs). These assessments can play an important role in supporting timely, fair and evidence-based claim decisions by providing independent vocational expertise.
This series explores the different types of FVAs used within the life insurance industry, their purpose, referral considerations, and how they can support decision-making throughout the TPD assessment process.
What is an FVA?
The term “Forensic Vocational Assessment” is widely used across the industry, yet there is no single universally accepted definition. Broadly, it refers to a range of vocational assessments designed to evaluate a person’s employability within the context of their injury, work history and the relevant insurance framework.
Breaking down the term can help clarify its meaning:
- Forensic – used in, or suitable to, courts of justice
- Vocational – relating to an occupation or employment
- Assessment – the action of assessing someone or something
Putting these components together helps translate the term into something more practical and meaningful in the claim’s context. Viewed this way, an FVA could therefore be considered as:
“A medicolegal assessment of an individual’s education, training, work history, skills and experience to determine suitable, alternate, real-world and achievable occupations appropriate for the individual following their injury or illness.”*
Rather than focusing solely on whether a person can return to their pre-injury role, an FVA examines broader vocational questions such as transferable skills, employability, labour market access and alternative occupational options.
Types of FVAs
There are several forms of FVA commonly used in TPD assessments, including:
- Employability Assessments (EA)
- Transferable Skills Assessments (TSA)
- Labour Market Analyses (LMA)
Each serves a different purpose and provides different forms of vocational evidence.
Source: *Australia’s Mental Health Check Up, Council of Australian Life Insurers and KPMG Life Insurance Industry Data Collection 2013-2022.