The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) have published an update on how life companies, including life insurers and friendly societies, are addressing regulator-identified issues on premium increases, product design, and disclosure and marketing materials. The review finds progress in several areas but concludes that work to curb premium volatility through product design is still at an early stage. APRA and ASIC first notified life companies in December 2022 and again in December 2023 following concerns that frequent, large and unexpected premium increases 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 noted that it is too early to assess whether recent product design actions will reduce the frequency and size of premium increases. The regulators will continue to engage with individual life companies where further uplift is needed.
Australian Prudential Regulation Authority 2025-06-05
Australian Prudential Regulation Authority and Australian Securities and Investments Commission find life insurers have improved governance around premium increases but product design changes remain early stage
The Australian Prudential Regulation Authority and the Australian Securities and Investments Commission reported progress in addressing issues related to premium increases, product design, and marketing in life companies, but noted that efforts to reduce premium volatility through product design remain in early stages. Improvements were seen in re-rating practices and governance, but further engagement with life companies is necessary.