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
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In the heart of New Zealand's pastoral verdure, the significance of preparedness for natural disasters is paramount for the farming industry. The distinct landscape, while providing an idyllic backdrop for agricultural pursuits, is not without its challenges. Farmers are often at the mercy of nature's unpredictability, making disaster preparedness not just prudent but essential for the continuity of their livelihood. - read more
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Farming is a vital part of New Zealand's economy and cultural heritage, representing a way of life for thousands across the country. With its unique landscapes and diverse climate, New Zealand farmers are renowned for producing a wide array of high-quality products that serve not only the nation's needs but also supply a multitude of international markets. - read more
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Knowledgebase
Insurance broker: An agent acting on behalf of the insured (not the insurance company) who negotiates the terms and cover provided by the insurer in the insurance policy.
