APRA and ASIC notice to all Life Insurers

Over the past few years, most of you have been aware of the increase in the cost of protecting your income due to insurers adjusting base premium rates.

In December 2022, the regulators, APRA and ASIC, sent an open letter to all insurers detailing their concerns with how some of these increases have been applied, particularly on Level premiums.

They have also questioned if the actions of the insurers were in accordance with the reasonable expectation created by the relevant disclosures and marketing material.

The regulators require all life insurance companies to review previous increases along with disclosure and marketing material and report their findings to ASIC by 31st March 2023. ASIC will arrange meetings to discuss individual responses in April-May 2023.

We will continue to keep you updated on any developments as they occur.

Please reach out to your adviser if you have any questions; they would be happy to assist in any way.