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Decline in Income Protection Premiums Reflects Market Adjustments in Australia

Analyzing the Factors Behind Recent Reductions in Insurance Premiums

Decline in Income Protection Premiums Reflects Market Adjustments in Australia?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 notable decrease in income protection insurance premiums across Australia.
Direct income protection premiums have fallen by 12% for policies with a 30-day waiting period and 13% for those with a 90-day waiting period since 2024.
Similarly, premiums for life products sold through advisers have decreased by 5%, with income protection premiums dropping by 7% for 30-day waiting periods and 5% for 90-day periods.

David Gallagher, Executive Director of Research at Rainmaker, attributes these reductions to insurers' efforts to remain competitive amidst cost-of-living pressures and rising claim costs. He emphasizes the importance of driving value, innovation, and efficiency to meet consumer needs effectively.

For consumers, this trend presents an opportunity to reassess existing policies or consider new coverage options. Engaging with financial advisors can provide insights into the most suitable and cost-effective income protection plans available in the current market.

In summary, the decline in income protection premiums reflects a dynamic insurance market responding to economic factors and consumer demands. Staying informed and proactive can help individuals secure optimal coverage tailored to their specific circumstances.

Published:Thursday, 25th Dec 2025
Source: Paige Estritori

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

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Moral Hazard:
The concept that individuals may take on more risk when they do not bear the full consequences of that risk, often relevant in insurance scenarios.