Regulators Push for Stability in Life Insurance Premiums

The Need for Improved Product Design and Transparency

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 Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) have jointly called on life insurers to address issues related to premium volatility.

This move comes in response to consumer concerns over unexpected and substantial premium increases that may not align with policy terms or reasonable expectations.

Regulators have observed that while some insurers have made progress in refining re-rating practices and enhancing disclosure materials, efforts to stabilise premiums through improved product design are still in their early stages. The effectiveness of these initiatives in reducing the frequency and magnitude of premium hikes remains to be seen.

To better serve policyholders, life insurers are encouraged to:

Develop products that offer more predictable premium structures.
Enhance transparency in marketing and disclosure materials to set clear expectations.
Engage in continuous product governance to ensure offerings meet consumer needs.

For consumers, staying informed about policy terms and potential premium changes is essential. Regularly reviewing insurance coverage and consulting with financial advisors can help navigate the complexities of life insurance products and ensure that coverage remains both adequate and affordable.

Published:Sunday, 5th Apr 2026
Author: Paige Estritori

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.

Share this news item:

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Insurance News

Regulators Call for Immediate Reforms in TPD Insurance Amid Rising Mental Health Claims

31 May 2026: Paige Estritori

In a recent joint roundtable, the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) have emphasised the pressing need for reforms in Total and Permanent Disability (TPD) insurance. The regulators highlighted that without prompt action, the sustainability of TPD insurance could be at risk, primarily due to the increasing frequency and complexity of mental health-related claims. - read more

APRA Enforces Capital Add-On and Licence Conditions on KeyInvest After Risk Management Review

31 May 2026: Paige Estritori

The Australian Prudential Regulation Authority (APRA) has recently imposed an additional $5.5 million capital requirement on KeyInvest Limited, a life insurance company and friendly society primarily offering funeral bonds. This decision follows an independent review that identified shortcomings in KeyInvest's risk management framework and raised concerns about the board's oversight of the insurer's long-term objectives. - read more

Consumer Advocates Challenge Proposed Changes to Mental Health Exclusions in Life Insurance Policies

31 May 2026: Paige Estritori

Consumer advocacy groups have recently expressed strong opposition to life insurers' proposals to lift existing code restrictions on blanket exclusions for mental health coverage. This move by insurers aims to modify the Life Insurance Code of Practice to allow for broader exclusions related to mental health conditions. - read more

Surge in Mental Health Claims Challenges Australia's Income Support System

23 May 2026: Paige Estritori

Recent data indicates a substantial increase in mental health-related claims, exerting considerable pressure on Australia's income support safety net. This trend underscores the urgent need for systemic reforms to address the growing demand for mental health support and the sustainability of income protection mechanisms. - read more

Click for more Insurance News

Life Insurance Articles

The Crucial Role of Life Insurance in Business Continuity Planning

Life insurance is a fundamental component that can play a significant role in the continuity of a business. Essentially, it's a contract between the policyholder and the insurer where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person. This financial safety net can be crucial for businesses wanting to safeguard their future operations against unexpected losses. - read more

What Does It All Mean? Navigating Life Insurance Terminology

When it comes to life insurance, understanding the terminology is crucial for anyone looking to secure their family's financial future. Unfortunately, life insurance can often seem like a confusing maze of complex terms and legal jargon. - read more

How Buy/Sell Agreements Use Life Insurance to Secure Your Business

Buy/sell agreements are crucial tools in business planning, designed to outline the process for transferring business ownership when a significant event occurs, such as the death, retirement, or incapacitation of an owner. These agreements ensure a smooth transition by predetermining the terms of sale and purchase among co-owners or with an outside party. - read more

Key Person Insurance: Why Every Business Needs It

Key person insurance is a vital component of any comprehensive business strategy. Essentially, it is a type of life or disability insurance that a company takes out on its most valuable employees—those who significantly contribute to the company’s success. In the unfortunate event that such a pivotal team member can no longer perform their duties, this insurance provides the business with financial stability, allowing it to navigate the aftermath with greater ease. - read more

Knowledgebase

Income Insurance:
Insures your income in the event of you being unable to work due to sickness or accident.

This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.

IMPORTANT: We act solely as an introducer and refer enquiries to licensed third-party brokers, insurers, and lenders. We do not provide financial product advice or credit assistance. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should independently verify the credentials and licensing of any adviser or provider you engage. Visit the ASIC website for further information.