Regulatory Update: ASIC and APRA's Review of Life Insurance Premium Practices

Assessing the Progress of Life Insurers in Addressing Premium and Product Design Concerns

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The Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) have jointly released an update on their review of life insurance premium practices.

This review was initiated in response to concerns over frequent and substantial premium increases that may not align with policy terms or policyholder expectations.

Key findings from the review include:

Improvements in re-rating practices, marketing materials, and product governance by life insurers.
Early-stage actions to address premium volatility through product design, with effectiveness yet to be fully assessed.

Despite these advancements, ASIC and APRA emphasize the need for continued efforts to ensure life insurance products meet consumer needs and offer reasonable premium stability. The regulators will maintain engagement with life insurers to monitor progress and address areas requiring further improvement.

For policyholders, this development underscores the importance of staying informed about their insurance policies and any changes in premiums. Consulting with independent insurance brokers can provide clarity and assistance in navigating these complexities.

Published:Wednesday, 8th Apr 2026
Author: Paige Estritori

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Subrogation:
An insurance carrier may reserve the "right of subrogation" in the event of a loss. This means that the company may choose to take action to recover the amount of a claim paid to a covered insured if the loss was caused by a third party.

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