ASIC and APRA release joint letter on premium increases in the life insurance industry
The Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) have issued a joint letter to CEOs of life insurers and friendly societies (life companies) about premium increases in the life insurance industry.
The letter outlines ASIC and APRA’s concerns following complaints from consumers and reportable situations related to premium increases, particularly in relation to ‘level’ premium products.
In the letter, ASIC and APRA request life companies review their past premium increases, and disclosure and marketing material. The letter also outlines ASIC and APRA’s expectations on the design of future product offerings.