News that average IP insurance premiums have experienced a hefty increase over the last five years generated strong reader interest this week…<\/h3>\n<\/div>\n<\/div>\n
Average retail income protection insurance premiums have experienced more than a 50% increase over the last five years, according <\/span><\/span><\/span>to Adviser Ratings\u2019 2024 Australian Financial Advice Landscape<\/a> report.<\/p>\n In examining premium change by policy type over time the report states that IP cover rose by 52%, noting that in recent years the industry has faced significant challenges in managing mental health pricing “…particularly as it deals with an exposed back book.”<\/p>\n IP is also the priciest insurance for consumers so the impact has been more\u00a0 substantially felt in terms of the household budget, it says.<\/p>\n Adviser Ratings says that TPD, accident-only and trauma have seen increases of 59%, 26% and 30%, respectively.<\/p>\n \u201cDeath insurance, the biggest contributor to an insurer\u2019s profitability, has seen an increase of 38% over the corresponding period.\u201d<\/p>\n Adviser Ratings notes that price stability is crucial for both consumers and advisers, as it ensures predictability and confidence in the life insurance market. (Also see: Mapping United Path to $500 Million Risk New Business<\/a>).<\/p>\n \u201cA stable pricing environment allows consumers to budget effectively for their insurance needs and assures advisers that the products they recommend will remain affordable and competitive.\u201d<\/p>\n The research firm says “…a deceleration in premium increase rates will indicate market health improvement, reflecting better risk management and a shift towards a more sustainable, customer-centric insurance landscape.”<\/p>\n Click here<\/a> to see the full report.<\/p>\n News that average IP insurance premiums have experienced a hefty increase over the last five years generated strong reader interest this week… Average retail income protection insurance premiums have experienced more than a 50% increase over the last five years, according to Adviser Ratings\u2019 2024 Australian Financial Advice Landscape report. In examining premium change […]<\/p>\n","protected":false},"author":24,"featured_media":72427,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,8271,8291],"tags":[],"class_list":{"0":"post-72421","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-general","8":"category-pricing","9":"category-story-of-the-week"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/72421","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=72421"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/72421\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/72427"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=72421"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=72421"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=72421"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/riskinfo.com.au\/news\/files\/2024\/07\/Premium-change-by-policy-type.jpg\")
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