Rising Group Premiums Pose Challenges for Australian Life Insurance

Insurance premiums for group life policies with long-term benefits have surged between 15% to 25% on average in the first half of the year, according to a mid-year market update from Marsh Australia.

While the steepest increases affected those with adverse claims experiences, short-term rates and premiums for permanent disabilities remained relatively steady.

The sector has also become more selective, with insurers adopting stricter underwriting standards, particularly eschewing high-risk industries.

Significantly, the report highlights that some insurers, troubled by poor claims experiences, have withdrawn from markets such as law firms and insurance companies. This has led businesses to reconsider their employee benefit strategies, leading to potential reductions in group life insurance coverage. Cost-cutting measures such as these may result in individuals being left underinsured.

The causes of claims have stayed consistent, with cancer still the leading factor in life claims and mental illness prominently impacting income protection claims. Of particular concern are mental health claims, which tend to persist longer and contribute substantially to rising claims costs for insurers.

On a positive note, a significant player has reentered the corporate life insurance arena outside of superannuation, presenting much-needed capacity after recent exits by other providers.

According to the Marsh report, these trends observed in the first half of the year are expected to continue for the remainder of the year.

Published:Thursday, 28th Aug 2025
Source: Paige Estritori

Share this news item:

Insurance News

NM Insurance Secures Growth with Five-Year Zurich Partnership

05 Sep 2025: Paige Estritori

In a strategic move set to bolster its market position, NM Insurance has announced a five-year agreement with capacity provider Zurich, positioning itself for further growth and increased broker confidence in its success. Since its establishment two decades ago as Nautilus Marine Insurance Agency, NM Insurance has expanded its focus beyond the recreational boat market in Australia, branching into New Zealand and diversifying into the commercial marine, caravan, and motorcycle sectors. - read more

Empower Your Cyber Knowledge with CFC's Free Masterclass

03 Sep 2025: Paige Estritori

In an era where cyber threats are increasingly sophisticated, CFC Underwriting Limited has unveiled a unique opportunity for brokers to fortify their expertise through its newly launched Cyber Masterclass. This initiative offers a flexible, on-demand video learning series designed to advance brokers into proficient cyber insurance specialists at their convenience. - read more

NSW Revisits CTP and Lifetime Care Schemes

02 Sep 2025: Paige Estritori

New South Wales (NSW) is undertaking a detailed review of its Compulsory Third Party (CTP) insurance scheme as well as its lifetime care and support system. The Standing Committee on Law and Justice of the state's upper house has initiated this examination as part of their routine practice conducted every parliamentary term. The last thorough assessment took place in 2022. - read more

AFCA Upholds Insurer's Premium Increase Amid Consumer Complaint

01 Sep 2025: Paige Estritori

A recent decision by the Australian Financial Complaints Authority (AFCA) has ruled against a homeowner seeking an $18,000 refund from Allianz. The homeowner claimed that the insurer failed to adequately inform her about substantial increases in her optional flood cover premiums. Initially, her monthly payments surged from $369 to $1277 in August 2022, a change she only noticed in March of the following year through her bank statements. - read more

Rising Group Premiums Pose Challenges for Australian Life Insurance

28 Aug 2025: Paige Estritori

Insurance premiums for group life policies with long-term benefits have surged between 15% to 25% on average in the first half of the year, according to a mid-year market update from Marsh Australia. While the steepest increases affected those with adverse claims experiences, short-term rates and premiums for permanent disabilities remained relatively steady. The sector has also become more selective, with insurers adopting stricter underwriting standards, particularly eschewing high-risk industries. - read more

Jetski Insurance Articles

10 Common Jet Ski Maintenance Mistakes and How to Avoid Them

Maintaining your jet ski is an essential task that goes beyond keeping it looking great; it's about ensuring its longevity and, most importantly, your safety on the water. Every enthusiast knows that the thrill of cutting through the waves comes with the responsibility of regular upkeep. Neglecting maintenance can lead to breakdowns, or worse, hazardous situations at sea that could have been easily avoided. - read more

Tips for Towing: How to Securely Tow a Disabled Jet Ski Back to Shore

Towing a disabled jet ski back to shore is a scenario that many water sports enthusiasts hope to never encounter. Yet, the importance of being prepared for such an event cannot be overstated. Whether caused by mechanical failure or unforeseen circumstances, when your jet ski succumbs while you’re out on the water, knowing how to securely tow it is essential for the safety of both yourself and your watercraft. - read more

Common Misconceptions About Jet Ski Insurance Debunked

Jet skiing is an exhilarating water sport that offers thrills and adventures. However, like any other activity involving high speeds and open waters, it comes with its own set of risks. - read more

Protecting Your Jetski Against Theft: Tips and Tricks

Owning a jet ski provides endless hours of fun and excitement, but it’s important to note that these thrill-seeking vessels are a prime target for thieves. According to statistics, jet ski theft in Australia has been on the rise in recent years, with many people falling victim to these crimes. Unfortunately, theft of your beloved watercraft could happen any time, but there are measures you can take to safeguard your asset. - read more

Common Mistakes to Avoid When Making a JetSki Insurance Claim

Jet skiing is an exhilarating water sport enjoyed by many Australians. Whether you are a seasoned rider or a beginner, having adequate insurance for your jet ski is crucial. - read more

Knowledgebase

Indemnity:
A legal principle that stipulates that insurance policies should restore the insured to the financial position they were in before the loss.

This website is owned and operated by Clark Family Pty Ltd (as Trustee for the Clark Family Trust) 43 Larch Street Tallebudgera QLD 4228, A.C.N. 010281008, authorised Financial Services Representative of Unique Group Broker Services Pty Ltd, Australian Financial Services License 509434. Visit the ASIC website for additional licensing information.

IMPORTANT: We are neither authorised nor licensed to provide finance or finance products. We do not recommend any specific financial products and we do not offer any form of credit or other financial advice. All product enquiries and requests for financial and/or other advice on this website are referred to third party, qualified intermediaries with whom you can deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third part to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs.