Regulatory Update: ASIC and APRA's Review of Life Insurance Premium Practices
Regulatory Update: ASIC and APRA's Review of Life Insurance Premium Practices
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The Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) have jointly released an update on their review of life insurance premium practices.
This review was initiated in response to concerns over frequent and substantial premium increases that may not align with policy terms or policyholder expectations.
Key findings from the review include:
Improvements in re-rating practices, marketing materials, and product governance by life insurers.
Early-stage actions to address premium volatility through product design, with effectiveness yet to be fully assessed.
Despite these advancements, ASIC and APRA emphasize the need for continued efforts to ensure life insurance products meet consumer needs and offer reasonable premium stability. The regulators will maintain engagement with life insurers to monitor progress and address areas requiring further improvement.
For policyholders, this development underscores the importance of staying informed about their insurance policies and any changes in premiums. Consulting with independent insurance brokers can provide clarity and assistance in navigating these complexities.
Recent reports have highlighted a concerning trend: escalating insurance premiums are placing significant financial strain on Australian retirees. Some individuals have experienced premium increases of up to 400%, making it increasingly difficult for those on fixed incomes to maintain essential coverage. - read more
The Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) have jointly released an update on their review of life insurance premium practices. This review was initiated in response to concerns over frequent and substantial premium increases that may not align with policy terms or policyholder expectations. - 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.
