The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) have published a joint update on how life companies (life insurers and friendly societies) are addressing regulatory concerns about premium increases, product design, and disclosure and marketing materials. The review finds uplift across several areas, but indicates that efforts to curb premium volatility through product design remain at an early stage and cannot yet be judged effective. APRA and ASIC 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, while noting that actions aimed at reducing the frequency and size of premium increases via product design are still developing. Both regulators will continue engaging with individual life companies where further uplift has been identified.
Australian Prudential Regulation Authority2025-06-05
Australian Prudential Regulation Authority and Australian Securities and Investments Commission update on life insurers’ progress on premium increases and disclosure and flag early-stage product redesign
The Australian Prudential Regulation Authority and the Australian Securities and Investments Commission released a joint update on life companies' responses to concerns about premium increases, product design, and disclosure. The review highlights improvements in re-rating, marketing, and product governance, but notes efforts to mitigate premium volatility through product design are still early. Both regulators will continue engaging with life companies to address areas needing improvement.