As rising claims and mental health risks put pressure on disability insurance, APRA and ASIC are pushing insurers to improve product designs and sustainability.
The regulator is maintaining the 45% floor for the advanced illiquidity premium risk allowance to ensure that settings remain aligned with risk levels.
APRA’s new System Risk Outlook also highlights the growing impact of geopolitical threats, cyber, and system interconnectedness on Australia’s financial system.
The regulator is sharpening its focus on affordability and long-term resilience as insurers face mounting cost pressures from natural disasters, inflation, and limited reinsurance capacity.
