The Australian Prudential Regulation Authority and the Australian Securities and Investments Commission have published public notes from their 15 April 2026 life insurance CEO roundtable, which focused on the worsening sustainability of total and permanent disability insurance. The discussion, which included 19 life insurers and reinsurers as well as Treasury and the Council of Australian Life Insurers, recorded broad agreement that TPD claims experience has deteriorated in both group and retail markets, particularly because of the rising incidence and complexity of mental health related claims. The notes link these trends to weaker premium affordability for consumers and greater financial volatility for insurers. The discussion centred on product design and on the different issues in group and retail TPD markets. Participants considered protection products that better reflect recovery pathways, episodic capacity and changing patterns of work, while noting legislative constraints on product change. APRA and ASIC said insurers should still act in areas within their control. In the group market, the notes highlight the role of superannuation trustees in shaping member outcomes and encourage more proactive insurer engagement with trustees. In the retail market, APRA stressed robust reserving and pricing practices so assumptions keep pace with claims experience and emerging risks, while ASIC reiterated that insurers must continue to handle claims in line with policy terms and legislative obligations. APRA and ASIC said they will continue to support industry efforts to address TPD sustainability challenges and remain open to facilitating joint insurer and trustee work where that could improve outcomes for members.
Australian Prudential Regulation Authority2026-05-22
Australian Prudential Regulation Authority and Australian Securities and Investments Commission publish life insurance CEO roundtable notes on TPD sustainability pressures
The Australian Prudential Regulation Authority and the Australian Securities and Investments Commission published notes from an April 2026 life insurance CEO roundtable on the worsening sustainability of total and permanent disability insurance, driven by deteriorating claims experience, especially mental health related claims. The discussion focused on product design, differences between group and retail TPD markets, and the roles of superannuation trustees, reserving and pricing practices, and claims handling. APRA and ASIC said they may facilitate joint work between insurers and trustees to improve member outcomes.