There was strong reader interest this week in our report around life insurers changing premium label descriptions for new retail advised business…
CALI has released a fact sheet for consumers outlining key facts on life insurance premium types in light of insurers changing premium label descriptions for new retail advised business up to and beyond 31 December 2024.
This initiative follows a warning from ASIC and APRA in December 2023 that the regulators will monitor life companies’ progress in meeting regulatory, consumer and community expectations of premium pricing decisions.
The December 2023 open letter to insurers noted this included the expectation that insurers would “…clearly explain how premiums are calculated and may change over the life of the policy,” (see: Regulators Crack the Whip on Premiums).
The CALI Fact Sheet explains that the aim of the premium label changes is “…to help make premium types and labels more understandable for Australian consumers by ensuring they better reflect how premiums change over time.”
To develop the new labels, CALI says it “…undertook customer research, including one-to-one consultations with insurance advisers and focus groups with life insurance and income protection customers across Australia.”
