The Australian Securities & Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) have released an update on the progress life companies (life insurers and friendly societies) have made in addressing concerns about premium increases, product design, and disclosure and marketing materials. The regulators first raised concerns with life companies in December 2022 and again in December 2023, citing frequent, large and unexpected premium increases that may not have been applied in accordance with policy terms and may not have met reasonable policyholder expectations. The latest review identified improvements in re-rating practices, marketing and disclosure materials, and product governance, but found actions to address increasing premium volatility through product design remain at an early stage and are too recent to assess for impact on the frequency and size of premium increases. ASIC and APRA will continue engaging with individual life companies where further uplift is needed, and reiterated expectations that products meet consumer needs, provide reasonable premium stability over the life of the policy, and manage consumer expectations around premium increases.

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