News the Government has been called on to recommit to an improved framework that will allow greater flexibility in transferring policy holders to more contemporary products – without the need for underwriting – attracted a high level of reader interest this week…
The Actuaries Institute has called on the Government to recommit to the development of an improved framework intended to allow life companies greater flexibility in transferring policy holders to more contemporary product offers without the need for underwriting.
This call has been made by the peak body within the context of its 2025/26 pre-budget submission paper.
…public consultation on this issue has yet to occur
In its submission, the institute notes the Government originally committed funds to Treasury in its 2021/22 Federal Budget for the purpose of developing an improved life insurance product rationalisation framework. But it adds that public consultation on this issue has yet to occur.
The Institute says it strongly supports this work continuing “…as consumers in legacy products, subject to a collective consumer best interest test, would benefit from being transferred to more contemporary life insurance products without the need to be medically underwritten.”
It adds flow-on benefits that may arise from making it easier for policy holders to transfer to contemporary risk products would include the creation of a greater appetite by insurers in product innovation, including in retirement products.
The call for the Government’s renewed commitment to this issue is one of a number of issues raised by the institute in its submission, with other areas of concern including:
- Digital, science and technology – Data Science and AI – Adoption of Safe and Responsible AI, cybersecurity and quantum computing
- The changing climate – Improving resilience and adapting, climate change and natural disaster resilience, planning for increased impacts of natural disasters, addressing home insurance affordability, adaptation and resilience financing, and transition financing
- Strengthening our health and disability systems – Disability and rehabilitation schemes, NDIS and private health insurance
- Other financial system issues including tax reform to simplify the superannuation system
- Advancement for First Nations people – Indigenous data governance and sovereignty
- Education – Ensuring a strong STEM workforce and financial literacy
Click here to review the 2025/26 Pre-Budget Submission paper released by the Actuaries’ Institute.