The Australian financial services landscape shows promising signs of growth in the risk insurance sector, with new business volumes trending upward despite ongoing challenges in affordability. This positive momentum occurs against a backdrop of regulatory scrutiny, particularly around claims handling and internal dispute resolution. The potential leadership change at the Financial Services Ministry, following Stephen Jones' expected departure, signals possible policy shifts. Meanwhile, industry calls for bipartisan, common-sense approaches to regulation are gaining momentum.
Acenda has established a dedicated innovation function to create new insurance propositions, furthering its ongoing transformation efforts. This strategic move comes as the insurer recently released its annual claims snapshot, highlighting improved processing times and customer satisfaction metrics.
In retirement income products, NGS Super and Challenger have formed a significant partnership to launch a lifetime income product, addressing growing demand from members for guaranteed income streams in retirement. This development coincides with Challenger's mixed Q3 FY25 results, where the company has narrowed its profit outlook but maintains confidence in achieving approximately 10% NPAT growth.
The reinsurance landscape continues to evolve with Swiss Re selling its Australian portfolio to Hannover Re, indicating ongoing consolidation in the sector. Meanwhile, TAL has made strategic moves by investing in Challenger and partnering with the Heart Foundation to enhance its health initiatives.
Research indicates a substantial insurance gap remains for women despite default superannuation cover providing some protection. This gender disparity requires targeted solutions from both product providers and advisers.
Financial strain continues to hinder life insurance take-up, according to warnings from the Council of Australian Life Insurers (CALI), which highlights affordability as a persistent barrier. This concern is exacerbated by broader financial literacy challenges affecting retirement confidence, suggesting a need for more accessible financial education.
Industry research also points to the importance of regular client engagement for retention, with advisers who maintain consistent communication reporting significantly higher client retention rates. Meanwhile, Zurich's recent study emphasises that retirees still need life insurance advice, challenging the assumption that life cover becomes irrelevant after retirement.
ASIC has launched a consultation on plans to increase the visibility of firms' breach and complaints data, including the potential naming of individual licensees in public reporting. This transparency push coincides with ASIC's announcement of a new portal for Australian Financial Services Licensees.
The regulator has also taken enforcement action, suing Hollard over claims handling failures, while intensifying its focus on cyber security compliance among advice firms.
In positive developments for advisers, there are signs of potential tax relief for risk advice, which could help address concerns about affordability. Industry polling suggests fees for risk advice are becoming more achievable as client value perceptions improve.
APRA and ASIC's joint publication of life insurance claims and disputes data reveals that disability income insurance drives the majority of disputes, highlighting an ongoing area requiring product and process improvement.
LGT Crestone has poached a Chief Risk Officer from Challenger, while Willis Towers Watson has promoted several local staff members to strengthen its Australian leadership team.
The Australian Life Underwriting and Claims Association (ALUCA) has announced the finalists for its Life Insurance Excellence Awards, recognising outstanding contributions to underwriting and claims management. Meanwhile, TAL has launched a new ethics program through its Risk Academy, emphasising the industry's focus on professional standards.