Regulators Assess Life Insurers' Progress on Premium Practices

The latest review identified improvements in re-rating practices, marketing and disclosure materials, as well as product governance. However, actions to address increasing premium volatility through product design are still at an early stage. Given the recency of these actions, it is too early to fully assess their effectiveness in reducing the frequency and size of premium increases. Both regulators will continue to engage with individual life companies where the need for further improvement has been identified.

Australians rely on life insurance to protect themselves against adverse events. Life insurers need to ensure their products meet consumers' needs, offer reasonable premium stability over the lifetime of the policy, and continuously manage the expectations of consumers around premium increases.