As of FY 2012, the industry has suffered over $110 million losses as reported by the Australian Prudential Regulation Authority. Due to this, insurance companies including Comm Insure are compelled to raise premiums for some or their policies.
Only new business rates and 2003-written policies and level premium rates for new business and in-force will remain unaffected by the changes.
Affected Policies Increase
Lifetime benefits 30%
Age 50-65 benefit periods (IP and
Income Care written pre 1997) 15%
Income Care policies written between
1997-2003 for Age 49 + 7.5%
Legacy income protection for
professional occupations 15%
It is important that clients are made aware of the changes that will take effect on 18 May 2013. Starting 2 April, clients will receive letters to inform them. It will include premium rate change, usual CPI and age based indexation.
Certain clients will be affected by the changes including those re-pricing in the next 8-12 weeks. Policies may need to be reviewed with regard to right coverage and affordability as well as possible reduction of lifetime benefit period to age 65.