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Australian Life and Income Protection Insurance Premiums Experience Notable Decline

Understanding the Factors Behind the Recent Premium Reductions

Australian Life and Income Protection Insurance Premiums Experience Notable Decline?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.

Recent research from Rainmaker Information indicates a significant decrease in life and income protection insurance premiums across Australia.
Direct life premiums have fallen by 7% since 2024, while direct income protection premiums have seen reductions of 12% and 13% for policies with 30-day and 90-day waiting periods, respectively.

In the advised insurance market, which involves products offered through financial advisors, life premiums decreased by 5% year-on-year. Income protection premiums also reduced by 7% and 5% for 30-day and 90-day waiting periods, respectively. These declines suggest a broader trend of decreasing premium rates in the Australian insurance sector.

Several factors may contribute to this downward trend:

  • Increased competition among insurers leading to more competitive pricing.
  • Improved risk assessment and underwriting processes.
  • Regulatory changes influencing product structures and pricing.

For consumers, this trend presents an opportunity to review existing policies and potentially secure more favorable terms. It's advisable to consult with financial advisors to understand how these market changes may impact individual insurance needs and to ensure that coverage remains adequate and cost-effective.

Insurers are encouraged to continue prioritizing value, innovation, and efficiency to remain competitive and consumer-focused in a rapidly evolving market.

Published:Tuesday, 3rd Feb 2026
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

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