How has Income Protections Changed?
Income protection insurance in Australia has undergone several significant changes in recent years, driven by regulatory reforms and market adjustments. Here are some of the main changes:
Navigating Income Protection Reform
Why Partnering with Surety Advisers Matters
Australia’s income protection insurance landscape has undergone major reform. Driven by the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA), these changes are designed to improve product sustainability, enhance transparency, and protect consumers.
At Surety Advisers, we help clients—and referral partners—stay ahead of these regulatory changes through expert life insurance advice and tailored solutions.
Stricter Regulatory Guidelines
ASIC and APRA now require insurers to meet higher standards around product design, disclosure, and claims handling. This ensures that policies meet the real needs of consumers—but it also makes navigating insurance options more complex. Our advisers are across the latest regulations and can help your clients make informed decisions that align with their risk profiles.
Key Policy Changes
- Disability Definition: Most policies now use the “any occupation” definition, requiring claimants to prove they can’t perform any suitable work—not just their own job.
- Benefit Period Reductions: Many insurers have moved from long-term to shorter benefit periods (e.g., two or five years), affecting claim payouts.
- Waiting Period Adjustments: Standardised—and sometimes extended—waiting periods aim to lower premiums and claims risk.
Surety Advisers explains these nuances in plain language so clients aren’t caught off guard at claim time.
Premium Restructuring
- Higher Premiums: Rising claims and lower investment returns have pushed up premiums industry-wide.
- Age-Based Pricing: Lifetime premium guarantees are vanishing. Today, most policies increase in cost as clients age.
We provide up-to-date comparisons and strategies to keep cover affordable as circumstances evolve.
Simplified Product Offerings
Insurers are streamlining and standardising policy features to make them easier to compare. This makes advice more important than ever. Surety Advisers cuts through the jargon to help clients choose the right option.
Enhanced Disclosure and Fairer Claims
- Improved PDS Clarity: Product Disclosure Statements must now be more detailed and digestible.
- Transparent Claims Handling: Insurers are under pressure to manage claims fairly and promptly.
We support clients throughout the claims process to improve outcomes and reduce stress.
Better Consumer Protections
- Cooling-Off Periods: Clients have more time to cancel a policy if it’s not right.
- Financial Hardship Support: Options now exist to pause or reduce cover without cancelling entirely.
Surety Advisers helps clients use these provisions to stay protected during tough times.
Pandemic Considerations
COVID-19 has prompted some insurers to introduce exclusions or special terms. We ensure clients understand how these affect their policies before they buy.
Why Partner with Surety Advisers?
We specialise in helping self-employed Australians, small business owners, and professionals navigate life insurance and income protection. With tailored advice, compliance support, and a deep understanding of regulatory shifts, Surety Advisers helps referral partners protect their clients—and strengthen their own value proposition.
Looking to enhance your client offering? Partner with Surety Advisers for expert, compliant, and reliable insurance advice.
Contact us to discuss a referral or joint venture opportunity.
