The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) have published an update on the progress made by life insurers and friendly societies to address premium increases, product design, and marketing and disclosure practices.
The regulators first raised these issues in December 2022 and followed up again in December 2023 after they found frequent, large and unexpected increases in premiums that may not be consistent with policy terms or in line with policyholders’ reasonable expectations.
Improvements have been made to re-rating practices, disclosures and marketing materials, and product governance under the latest review.
However, the move to reduce premium volatility through product design is still in its early stages. Given the recent implementation of these measures, the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) said it is too early to assess the full impact of these measures on stabilising premium increases.
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