Regulatory Review of Life Insurance Premium Practices in Australia
Regulatory Review of Life Insurance Premium Practices in Australia
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In June 2025, the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) provided an update on their joint review of life insurance premium practices.
This initiative was prompted by concerns over frequent and substantial premium increases that may not align with policy terms or policyholder expectations.
The regulators' review highlighted several key areas:
Re-rating Practices: Improvements have been noted in how insurers adjust premiums, aiming for more consistency and fairness.
Marketing and Disclosure Materials: Efforts have been made to enhance clarity, ensuring policyholders fully understand their coverage and potential premium changes.
Product Governance: Steps have been taken to strengthen oversight, promoting products that meet consumer needs and expectations.
Despite these advancements, the review found that actions to address premium volatility through product design are still in early stages. The effectiveness of these measures in reducing the frequency and size of premium increases remains to be seen.
For Australian policyholders, this review underscores the importance of understanding the terms of their life insurance policies. It's advisable to:
Regularly review policy documents to stay informed about potential premium changes.
Engage with insurers to clarify any uncertainties regarding coverage and costs.
Consider consulting financial advisers to ensure their insurance coverage aligns with their financial goals and needs.
As the life insurance industry continues to evolve, staying informed and proactive will help policyholders navigate changes and make decisions that best suit their circumstances.
In June 2025, the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) provided an update on their joint review of life insurance premium practices. This initiative was prompted by concerns over frequent and substantial premium increases that may not align with policy terms or policyholder expectations. - read more
In August 2025, the Australian Securities and Investments Commission (ASIC) released findings from a review of direct life insurance sales practices, uncovering persistent deficiencies despite previous regulatory interventions. - read more
Swiss Re Life & Health Australia has announced a suspension of new life insurance business activities in the country, effective October 2025. This decision stems from concerns over the sustainability of Total Permanent Disability (TPD) insurance products, which have seen a significant rise in claims, particularly related to mental health. - read more
Damien Mu, CEO of AIA Australia, has raised concerns about the sustainability of the current life insurance model, citing a significant increase in mental health claims and economic volatility. Speaking at the company's recent Thrive for Life presentation, Mu emphasised that the industry is facing structural changes driven by these factors. - read more
Australia's life insurance market is on a trajectory to reach $19.8 billion by 2029, according to a recent report by GlobalData. This growth is driven by a combination of demographic shifts, economic factors, and innovation in insurance products. - read more
Life insurance is a financial product that provides a lump sum payment to your beneficiaries in the event of your death. It is designed to offer financial security by covering debts, daily living expenses, and future financial obligations. - read more
When the unexpected strikes, such as an illness or injury hindering our ability to earn a living, the financial repercussions can be devastating. This is where income protection insurance becomes a pivotal part of our financial safety net, ensuring a stream of income during challenging times. Income protection insurance is specifically designed to replace a significant portion of your salary if you're unable to work due to medical reasons, providing peace of mind and financial stability when you need it most. - read more
As the landscape of finance and personal security evolves in Australia, the importance of being insured has never been more prominent. In a world of changing family dynamics, economic pressures, and higher living costs, life insurance stands as a bastion of support ensuring the well-being of loved ones in the event of unforeseen circumstances. The advent of the digital age has significantly shifted the manner in which Australians can shop for and secure life insurance from the comfort of their homes, offering tailored solutions with just a few clicks. - read more
There's often confusion surrounding the amount of life insurance one truly needs. Common misconceptions cloud our judgment, leading some to undervalue their coverage, while others may overinsure, unnecessarily straining their financial resources. It is a delicate balance to strike, and understanding the nuances of life insurance is pivotal to making informed decisions. - read more
Income protection insurance is a vital safety net for those who earn their livelihood through skilled trades. It is designed to replace a portion of your income if you're unable to work due to illness or injury, ensuring that you can meet your financial obligations while you recover. This type of insurance provides peace of mind, knowing that even if the unexpected happens, your bills can still be paid and your lifestyle maintained. - read more
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Knowledgebase
Term Life Insurance: A type of life insurance policy that provides coverage for a specified period, such as 10 or 20 years.
