APRA's Jane Magill told the All Actuaries Summit that TPD insurance is "being tested by a sharp rise in mental health claims" — now one in three claims paid. Mental health claims for people in their 30s have risen over 700% in the past decade.
ASIC's updated Regulatory Guide 271 imposes stricter timeframes for acknowledging and resolving insurance claims. Insurers must now provide initial claim decisions within 10 business days and keep policyholders updated on complex claims progress at least every 20 business days.
Retail life insurance premiums saw 2-4% increases across most categories in Q1 2026. Group insurance rates are under sustained pressure as reinsurers tighten terms on income protection and TPD. Trauma premiums remained relatively stable.
Australian general insurers reported improved combined ratios for FY25, though natural catastrophe costs and rising reinsurance premiums continue to challenge underwriting profitability. The industry combined ratio improved to 94.8% from 96.2%.
APRA has released a consultation paper on new Prudential Standard CPS 270, aimed at improving claims management practices across the life insurance industry. Key proposals include mandatory claims data reporting and independent claims governance reviews.
The Actuaries Institute's latest claims monitoring report shows income protection claims frequency has normalised after elevated levels during the pandemic. Duration of claims remains a concern, with longer-term claims continuing to rise.
Merger and acquisition activity in the Australian insurance broking sector continues to accelerate, with several mid-tier brokers consolidating. Steadfast Group and PSC Insurance remain active acquirers as consolidation drives scale benefits.
ASIC's strengthened breach reporting requirements came into effect this quarter, requiring insurers to report significant compliance breaches within 30 calendar days. Early data shows a 40% increase in self-reported breaches as firms adjust to the new regime.
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