Income Insurance Australia :: Podcasts

Income Insurance Australia Weekly News insights

Each week, we sift the Australian income protection landscape: policy and regulation updates, insurer moves, claim trends, and workplace risk stories. Get clear, plain-English takeaways, myth-busting context, and what changing rules may mean for employees, sole traders, and gig workers. It’s a trustworthy, industry-specific news wrap to keep your household income know-how sharp without the jargon. Expect concise interviews and pointers to credible sources so you can stay prepared.

This Week:

This week: a major reinsurer pauses new life reinsurance clients, warning TPD needs more sustainable design; APRA reports most reversed life claim decisions stem from incorrect outcomes, including almost half in disability income; AFCA says life insurance complaints rose about 5%, with self‑employed income protection disputes often about pre‑disability income; and public submissions are open until 15 December on the Life Insurance Code review. Practical takeaways: review your income protection and TPD settings, keep strong income and medical records, and check policy definitions—especially if youre self‑employed.

Read Full Transcript:

Hello and welcome to Income Insurance Australia Weekly News insights, Im Paige Estritori, and its Sunday 26 October 2025. First up, one of the biggest moves in years: a major reinsurer has paused taking on new life insurance clients in Australia, saying total and permanent disability, or TPD, products need more sustainable design. Rising claim costs and the changing nature of work are front and centre, with industry data showing mental‑health TPD payouts have nearly doubled in five years to about $2.2 billion last year. For you, this signals ongoing redesign across disability cover. Use this moment to review your own mix of income protection and TPD, and make sure waiting periods and benefit periods still match your work and living costs. Next, the Australian Prudential Regulation Authority, or APRA, says “incorrect outcomes” drove most reversed decisions on life claims over the past year, including almost half of overturned decisions in disability income claims. That tells us disputes often come down to process and evidence, not just definitions. Keep solid medical and income records, respond quickly to insurer requests, and get help early so your policy can do what its meant to do—replace your pay if you cant work. Meanwhile, complaints to the Australian Financial Complaints Authority, or AFCA, about life insurance rose about five per cent in the year to June. Denial‑of‑claim disputes climbed, and TPD complaints were up sharply. AFCA also notes a pattern for self‑employed income protection claims—arguments over “pre‑disability income.” If youre a sole trader or contractor, keep clear BAS, invoices and bank statements, and check how your policy defines income so benefits line up with your real earnings. And a quick regulatory note: public submissions are open until 15 December on the Life Insurance Code of Practice review. The consultation is looking at claims handling, support for vulnerable customers, medical definitions and mental‑health protections. Expect clearer standards ahead. If youre comparing cover now, focus on policies with transparent definitions and rehabilitation support that help you return to work. Thats the wrap. If this sparked questions about your own income insurance—whether youre on wages or self‑employed—head to income-insurance.com.au for a simple, tailored assessment and support.

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