We are a proud member of the Financial Services Online network!
Connect with us on your favourite social media platform for the latest financial news, views, tips, tricks, resources and information.
This downward trend is believed to be partially due to legislative changes, specifically citing the Protecting Your Super package, which significantly reduced the instances of automatic coverage in certain superannuation accounts. These regulations were aimed at safeguarding the super funds of Australians from unnecessary erosion due to fees and insurance premiums, particularly in cases of low balance and inactive super accounts.
Data gleaned from industry body Council of Australian Life Insurers (CALI) shines a light on the residual under-insurance issue, suggesting that approximately 3.4 million citizens fail to maintain adequate income protection coverage for basic livelihood necessities, suggesting an undercurrent of financial vulnerability in the populace.
The landscape of the life insurance sector has also undergone significant consolidation in recent years. The current market comprises 24 life insurers, seven of which are onshore reinsurers, and 10 friendly societies. This is a reduction from the 29 insurers and 12 friendly societies active in 2018, leading to a more concentrated market environment.
Although the industry has faced challenges, there have been positive shifts making the market more appealing for insurers and insureds alike. The Australian Prudential Regulation Authority (APRA) instigated crucial capital modifications, changes were implemented regarding income protection products, and a substantial surge in the price of current income protection products was observed. Adding to this landscape, there was noteworthy industry data suggesting stabilization in the migration away from financial advisement as adviser numbers began to level out.
Encouragingly, due to industry adaptation and increased adviser productivity, there has been an upswing in new business acquisitions over three consecutive quarters. This rejuvenation brings renewed optimism as what some are calling an "inflection point", hinting at a trajectory of growth and recovery for the life insurance market moving forward.
As financial landscapes evolve, the coming years will be critical in assessing whether these trends will continue to affect the levels of life and income protection insurance coverage across Australia, and whether current industry adaptations will suffice to close the gap in under-insurance among Australians.
Published:Friday, 19th Apr 2024
Source: Paige Estritori
| Marine Insurance Leader Club Marine Welcomes New CEO 07 May 2024: .Paige Estritori In a notable shift in its leadership ranks, Club Marine, a key player in the marine insurance market and subsidiary of Allianz, has officially instated Tim Wiles as its Chief Executive Officer. Wiles, having confidently steered the company since last November as interim CEO, has now been entrusted with the permanent leadership mantle. - read more |
| NSW Review Sheds Light on Strata Sector Transparency 06 May 2024: .Paige Estritori The NSW state government has initiated a deep dive into the operations of a leading strata management firm. This move underscores a growing tide of demand for increased clarity and fairness in the industry. Responding to mounting public scrutiny, this investigation sets a new precedent in the regulation of property management entities. - read more |
| Lifetime Financial Services Ban Upheld for Misconduct 03 May 2024: .Paige Estritori The financial industry has affirmed its commitment to integrity as a former insurance broker, convicted of defrauding clients, failed to overturn a lifetime ban on his financial services activities. Initially penalized for siphoning off clients’ insurance premiums for his own use, the advisor sought leniency to no avail. - read more |
| Bellrock Enhances Advisory Services to Support Business Deals 03 May 2024: .Paige Estritori Bellrock has announced an expansion of its suite of services to encompass support for mergers and acquisitions (M&A) as well as contingent risks. The enhancement of these services comes amid an expected increase in M&A activities, demanding more specialized and creative risk management solutions. - read more |
| Insurance Claim Denied Due to Undisclosed Conviction 02 May 2024: .Paige Estritori An insurance policyholder recently experienced the repercussions of non-disclosure after his claim was rejected by an insurer upon the discovery of an undisclosed traffic conviction. The undisclosed criminal traffic offense led to repercussions from both the insurer and a financial authority, serving as a cautionary example for transparency in insurance agreements. - read more |
| 10 Tips for Lowering Your Home and Contents Insurance Premiums One of the best ways to lower your home and contents insurance premiums is to shop around for the best deal. Insurance companies often have varying rates, discounts, and offers that could save you a significant amount of money. Start by researching different insurance providers and their policy offerings. Make sure to compare not only pricing but also features, coverages and deductible amounts. - read more
|
| The Beginner's Checklist for Comparing Home Insurance Quotes Online Home insurance serves as a critical safety net for homeowners, providing peace of mind and financial protection from unexpected events. In Australia, where Mother Nature’s whims can often result in extreme weather conditions, securing a robust home insurance policy isn't just wise—it's practically a necessity for safeguarding one of life's biggest investments. - read more
|
| Wild Weather Ahead: Safeguarding Your Property from Storm-Related Damages Welcome to our essential guide for protecting your property as wild weather sets its sights on Australia. Catastrophic storms and extreme conditions don't have to spell disaster for your home. Understanding the sheer force of Mother Nature reinforces the importance of consistent preparedness. In this article, we'll arm you with the knowledge you need to stand resilient against the elements. - read more
|
| How to ensure your home renovation is covered by your insurance policy Renovating your home can be an exciting time, but it can also be a stressful one. There are so many things to consider and plan for, including financing the renovations, choosing the right contractor, and selecting the materials to be used. One aspect that often gets overlooked during planning is the impact that renovations can have on your insurance coverage. - read more
|
| 5 Essential Insurance Policies for Your Home-Based Business If you're running a business from your home, you may think that your homeowner's insurance policy has you covered. Unfortunately, this is not the case. Homeowner's insurance policies are not typically designed to cover business-related losses, leaving you vulnerable to significant financial risks if something goes wrong. - read more
|