Partnership Insurance Solutions :: News
SHARE

Share this news item!

Regulators Call for Action on TPD Insurance Sustainability

Addressing the Pressures Facing Total and Permanent Disability Insurance

Regulators Call for Action on TPD Insurance Sustainability?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) have recently convened a joint CEO roundtable to address mounting sustainability pressures in the Total and Permanent Disability (TPD) insurance market.
This meeting brought together senior representatives from 19 life insurers and reinsurers, as well as officials from Treasury and the Council of Australian Life Insurers.

During the roundtable, participants acknowledged that the challenges facing TPD insurance are significant and likely to persist without proactive measures. A key concern highlighted was the deteriorating claims experience across both group and retail markets, driven particularly by the increasing incidence and complexity of mental health-related claims. This trend has led to affordability issues for consumers due to rising premiums and increased financial volatility for insurers.

Discussions focused on the need for product redesign to better reflect modern work environments and recovery pathways. Participants explored the possibility of developing products that account for episodic work capacity and evolving patterns of employment. While some insurers are already piloting new approaches, legislative constraints were noted as limiting the scope for broader product redesign.

APRA and ASIC emphasised that insurers should not delay taking actions within their control. They urged insurers to ensure that products are designed around the needs of their intended target market and to engage proactively with superannuation trustees to improve member outcomes. The regulators also highlighted the importance of robust reserving and pricing practices to keep pace with evolving claims experience and emerging risks.

For consumers, these developments underscore the importance of understanding the terms and conditions of TPD insurance policies. As the industry works towards more sustainable and responsive products, policyholders should stay informed about potential changes and consider consulting with financial advisors to ensure their coverage aligns with their needs and expectations.

Published:Wednesday, 3rd Jun 2026
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Insurance News

Why genetic testing reform matters for partnership life cover
Why genetic testing reform matters for partnership life cover
16 Sep 2026: Paige Estritori
Australia’s move towards restricting how life insurers use genetic test results is an important development for people who have delayed testing, treatment or insurance conversations because of privacy and affordability concerns. The reform is intended to reduce the risk that someone is discouraged from taking a clinically useful genetic test because they fear it may later affect their ability to obtain life, total and permanent disability, trauma or income protection cover. - read more
What firmer life insurance data means for business partners
What firmer life insurance data means for business partners
09 Sep 2026: Paige Estritori
Fresh prudential reporting on Australia’s life insurance sector suggests the market is continuing to regain stability after several difficult years of claims pressure, premium scrutiny and product redesign. For policyholders, that is a positive signal. A stronger insurer market generally supports confidence that long-term promises can be met, especially where life, total and permanent disability and trauma benefits are intended to protect families, business debts and succession arrangements. - read more
Why premium pressure should prompt a smarter life insurance review
Why premium pressure should prompt a smarter life insurance review
02 Sep 2026: Paige Estritori
Recent consumer finance reporting has again highlighted a familiar pressure point for Australians: household and business budgets are being stretched, and insurance premiums are increasingly coming under review. For life insurance customers, that does not always mean cancelling cover. It should mean checking whether the policy still matches the risk it was bought to manage. - read more
What Code Reform Momentum Means for Partnership Life Cover
What Code Reform Momentum Means for Partnership Life Cover
26 Aug 2026: Paige Estritori
The life insurance industry’s response to the independent Life Insurance Code of Practice review is now shifting from what should change to how those changes may be put into practice. The review’s recommendations have already put pressure on insurers to improve clarity, fairness and support for customers, particularly where mental health, vulnerability and claims handling are involved. - read more


Life Insurance Articles

Eligibility and Underwriting for Partnership Life Insurance in Australia
Eligibility and Underwriting for Partnership Life Insurance in Australia
Applying for partnership life insurance often involves more than choosing a cover amount. Insurers may consider each partner's health, occupation, lifestyle, financial position, business structure and disclosure history before deciding whether to offer cover and on what terms. - read more
Creating a Comprehensive Risk Management Plan for Business Partnerships
Creating a Comprehensive Risk Management Plan for Business Partnerships
Risk management in the context of business partnerships involves identifying, assessing, and prioritising risks that could impact the success of a business alliance. Whether it’s financial, operational, or reputational, understanding these risks helps partners make informed decisions, safeguarding their shared interests. - read more
Legal and Tax Considerations for Partnership Life Insurance in Australia
Legal and Tax Considerations for Partnership Life Insurance in Australia
Partnership life insurance can support business continuity, succession planning and buy-sell agreements, but ownership, tax treatment and regulatory obligations need careful consideration. This guide explains the key legal, tax and compliance issues Australian business partners should understand before seeking professional advice. - read more
How to Estimate Life Insurance Cover for Business Partners
How to Estimate Life Insurance Cover for Business Partners
Business partners often need life insurance cover that reflects more than personal expenses. This guide explains the main factors that can influence cover amounts for continuity, succession and partnership funding in Australia. - read more

Knowledgebase
Loss of Use:
Insurance coverage that pays for the additional living expenses if your home is uninhabitable due to a covered loss.