Regulators Scrutinize Life Insurance Premium Hikes Amid Consumer Concerns
APRA and ASIC Collaborate to Ensure Fair Practices in Premium Adjustments
11
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) have jointly reviewed life insurers' practices concerning premium increases, aiming to ensure they align with policy terms and meet reasonable policyholder expectations.
Initiated in late 2022, the review responded to concerns that repeated premium hikes may not have been applied appropriately, potentially leading to consumer dissatisfaction. Life insurers were urged to assess their re-rating practices, marketing materials, and product governance to address these issues.
Throughout 2023 and 2024, life companies made progress by improving these areas. However, given the recency of these actions, it is still too early to fully assess their effectiveness in reducing the frequency and size of premium increases.
APRA and ASIC will continue engaging with individual life companies where further improvements are needed, emphasizing the importance of transparent and fair premium practices to maintain consumer trust and industry stability.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
The National Roads and Motorists' Association (NRMA) has raised concerns about Australia's crude oil supply, identifying it as a significant challenge amid ongoing Middle East conflicts. This situation has potential implications for transport costs and motor insurance exposures in the coming months. - read more
AustralianSuper, the nation's largest superannuation fund, has informed its members of impending increases in insurance premiums, set to take effect from May 30, 2026. This development is particularly noteworthy for those holding life, total and permanent disability (TPD), and income protection insurance through their superannuation accounts. - read more
Health insurers are calling on the Australian government to exempt low-income seniors, including those on the Age Pension, from the proposed changes to the Private Health Insurance Rebate. The concern is that requiring these individuals to pay hundreds of dollars more each year to maintain their private health insurance could lead some to downgrade their coverage or abandon it altogether. - read more
The International Union of Marine Insurance (IUMI) has recently highlighted the resilience of marine insurers in the face of escalating conflicts in the Middle East. Despite the challenging geopolitical landscape, insurers continue to provide essential coverage for cargo, hull, liability, and offshore energy sectors, ensuring that global trade flows remain protected. - read more
