Australian life insurance market continues hardening in second half of 2017

Taking a look into the landscape for 2018

December 5, 2017
| Australia

The Australian life insurance market has been faced with significant pressures in recent years that have resulted in a hardening market. While there are a number of contributing factors it is important that clients understand the current observations and trends, to be well informed of how the market will move in 2018. There are activities which can be undertaken prior to the renewal date for group life insurance policies that will place your business in an optimal position from an insurance market perspective.

In recent years, the greater awareness of mental health and illness in the workplace has led to the market observing a higher rate of claims notification in the area of “unknown” claims, which are lodged past the formal qualifying period. This is the result of lawyers actively pursuing claims on behalf of their clients. 2017 saw the rise of financial wellness and its direct correlation to employee mental health and performance, all things being considered, disability claims have been seen as an alternative financial incentive if faced with redundancy.

Looking into 2018, the Australian life insurance market is likely to experience further consolidation through various mergers and acquisitions, coupled with the increase in claims notification, it is likely for premiums to move upwards.

There are steps that clients can take now, prior to the renewal period to place their business in an optimal position as we move into 2018.