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
| 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 |
| Call for Equitable Cyclone Insurance Subsidies Grows 01 May 2024: .Paige Estritori A notable Australian consumer group insists for a revision of the cyclone insurance framework to achieve better parity among affected regions. Before its scheduled review, the proposed recalibration looks to distribute fiscal pressures more evenly among Australians, possibly extending the burden of cost to regions historically less affected by cyclones, such as Sydney. - read more |
| Victorian Flood Inquiry Calls for Faster Insurance Responses 30 Apr 2024: .Paige Estritori An investigation into Victoria’s extreme flood impact reveals prolonged distress due to insurance obstacles. The Legislative Assembly's examination brings forth issues with claim resolutions and coverage gaps as critical barriers in recuperation after the devastation of October 2022. - read more |
| Antique Car Claim Hits the Brakes: Home Insurance Does Not Cover Vehicle Damage 24 Apr 2024: .Paige Estritori In an intriguing turn of events, a dedicated car enthusiast's claim for damages to his vintage vehicle under home insurance has been denied after a careful review by the Australian Financial Complaints Authority (AFCA). The individual's relic, a 1970 Mercedes-Benz 280e sedan, which was being lovingly restored and was far from operational, rolled into an adjacent van following the snap of a winch cable. - read more |
| Communities Laud Insurance Improvements Post-Flood Events 23 Apr 2024: .Paige Estritori Residents and officials from regions affected by flooding have observed a discernable shift in insurers' handling of claims following natural catastrophes, with recent proceedings reflecting a more positive trajectory. This outlook emerged during a federal inquiry session that gave a voice to flood-impacted communities in Heathcote, Victoria. - read more |
| The Importance of Public Liability Insurance in the Australian Labour Hire Industry The Australian labour hire industry has seen a significant rise in recent years, and with this growth, comes new and unique risks that companies in this industry must be prepared to navigate. One such risk is the potential for accidents or damages to occur in the workplace, which is where public liability insurance comes in. This article will explore the definition of public liability insurance and why it is so important for labour hire companies in Australia. - read more
|
| Reducing Your Risks: Public Liability Coverage Tips for Trade Professionals For tradesmen and trade professionals, venturing into the world of business comes with its set of challenges and risks. Among the myriad of precautions to consider, one critical safeguard stands out for its ability to protect both the tradesperson and their clients: Public Liability Insurance. This form of coverage is not just a safety net; it is a cornerstone of a responsible business practice within the trade industry. - read more
|
| Proven Strategies for Slashing Your Business Liability Insurance Costs Welcome to our comprehensive guide on public liability insurance, an essential safeguard for businesses across Australia. Navigating the complexities of liability insurance can be a daunting task for many business owners, but it’s a critical component of your business protection plan. If incidents such as accidents or property damage occur, liability insurance is the barrier that stands between your business and financial calamity. - read more
|
| The Cost of Safety: How Much Public Liability Insurance Does Your Australian Business Need? As a business operating in Australia, understanding the ins and outs of public liability insurance is not just recommended, it's essential. This type of insurance serves as a safeguard, protecting your business against the financial repercussions of lawsuits and claims arising from third-party injuries or property damage due to your business operations. In a world where one unintended mishap can lead to costly legal battles, public liability insurance stands as your first line of defense. - read more
|
| Understanding the Role of Public Liability Insurance in Business Disaster Planning For Australian business owners, planning for unforeseen disasters is not just prudent; it's an essential aspect of sustaining operations amidst challenges. Recognizing the importance of comprehensive strategies, including robust insurance cover, can make all the difference in business longevity and legal protection. As we navigate the complexities of running a business, it's imperative to have a safeguard against mishaps that could otherwise jeopardize our hard-earned success. - read more
|