APRA and ASIC Address TPD Insurance Sustainability Challenges
Industry Leaders Convene to Tackle Rising Mental Health Claims
0
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.
In a recent industry roundtable, the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) convened with senior executives from 19 insurers and reinsurers to discuss the sustainability pressures facing Total and Permanent Disability (TPD) insurance.
The primary concern is the significant increase in mental health-related claims, which are contributing to affordability issues for consumers and financial volatility for insurers.
The regulators emphasized the need for proactive measures, including potential product redesigns, to ensure the long-term viability of TPD insurance. Participants acknowledged that traditional TPD definitions and benefit structures might no longer be suitable in the evolving workforce environment. The discussion highlighted the importance of balancing consumer protection with the sustainability of insurance products.
For Australian policyholders, this development indicates a potential shift in TPD insurance offerings. Staying informed about these changes and understanding how they may impact coverage options is crucial. Engaging with financial advisors and insurers to discuss individual needs and concerns can help ensure that TPD coverage remains effective and affordable.
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.
Victoria is moving ahead with a decennial insurance framework for apartment building defects, adding another important signal that construction quality, documentation and insurability are becoming inseparable issues for builders, developers and project teams. - read more
Australia’s general insurance sector is facing a proposed step-up in accountability, with the Insurance Council of Australia opening consultation on a new draft General Insurance Code of Practice on 24 June 2026. For truck owners, small fleet operators and transport businesses, the most relevant shift is not just the wording of the code, but the possibility that parts of it could become contractually enforceable for the first time, subject to ASIC approval. - read more
New market data points to a meaningful lift in Australians taking out individual income protection insurance, suggesting more households are reassessing how they would manage financially if illness or injury interrupted their pay. - read more
A recent sanction against an unnamed life insurer has put claims handling back under the spotlight, particularly for Australians who rely on personal insurance as a financial safety net. The Life Insurance Code Compliance Committee found that the insurer failed to request required information from claimants at the earliest available opportunity, contributing to significant delays for some customers waiting on claim decisions. - read more
The Insurance Council of Australia has released a draft General Insurance Code of Practice for feedback, marking a significant step in the industry’s push to strengthen customer protections. Released on 24 June 2026, the draft is open for consultation until 21 July 2026 and is designed to make key obligations legally enforceable through insurance contracts. - read more
A new specialist insurance product for Australian crane and rigging operators is a timely reminder that not every business fits neatly into a standard policy box. ARTes Specialty, working with wholesale provider Mobius Insurance, has launched an integrated crane and rigging policy for the local market, adding to its earlier Australian offerings for commercial loggers and contractors’ plant and equipment. - read more
No comments yet. Be the first to share your thoughts.