Income Protection Insurance Premium Increases
The Australian Prudential Regulation Authority (APRA) is an independent statutory authority that supervises institutions across banking, insurance and superannuation, and is accountable to the Australian Parliament. It is responsible for promoting the prudent management of regulated institutions so they can meet their financial obligations under all reasonable circumstances.
APRA issued a letter on 30 September 2020 setting out their final position on the sustainability measures they required insurance providers to take to remain viable including;
Increasing the amount of capital required to be invested to fund claims
Managing product features to make sustain payment of claims
Capturing data to review profitability and sustainability of the sector.
Various insurance companies are rapidly rolling out changes to both the features and pricing of Insurance policies.
Affected clients were advised in writing in January 2021 of the changes to their policy, and we anticipate further letters will be sent out over the next 12 months as the anniversary date of an insurance policy falls due.
If you are in receipt of any correspondence from your insurance company and unsure of its contents or what it means for you, please contact us. Please note there are a myriad of changes and it is important we talk through your options, to ensure your insurance policy continues to meet your needs and objectives, and is the very best choice for you and your family. We will work with you to provide the most comprehensive cover for the most affordable price available.
There will be further changes for Income Protection Insurance later this year. We will keep you updated with any changes to features and pricing as they become available.
To ensure your financial health and stability, we maintain appropriate insurance cover remains a vital part of your overall financial plan.