Income Protection Premium Increases Set to Take Effect

Income Protection policy premium increases will commence in 2017 due to the higher than expected amount of claims being submitted and loss of revenue due to significant amounts of money lost on retail income protection over the last five years.

As a result of these higher than expected claims and loss of revenue, most life insurers have been steadily increasing their income protection rates.

The Australian Prudential Regulations Authority (APRA) was said to have observed many insurers increasing premiums in an attempt to improve profitability. APRA also identified that some companies failed to manage their ever increasing number of legacy products efficiently. These old legacy systems, with their outdated medical definitions, resulted in the products becoming more complex and costly, as well as not meeting the policyholders’ needs.

AIA, CommInsure and Clearview are some of the companies informing their customers of increasing premium rates. Specifically Income Protection (IP) policies and Business Expense (BE) policies.


AIA customers can expect an average increase of 4%, set to be applied for their next policy anniversary. The increase will vary depending on occupational class, waiting periods and benefit periods.


CommInsure is increasing their Income Protection premiums with 7.5%, which will take place on the anniversary of a client’s policy anniversary.


Income Protection and Business Expenses policyholders can expect the following increases:

  • Waiting period rates for 14, 30, 365 and 720 days have increased by 10% to 15%.
  • Waiting period rates for 60 and 180 days have increased by 5% to 7.5%.
  • The discount on an Occupational Class AAA professional has increased with 2.5%.
  • AM Medical professional discount has decreased from 25% to 22.5%.

Compare Income Protection Online

Free Online Comparison Free Online Comparison
Lowest Price Guarantee Lowest Price Guarantee*
No Hidden Fees No Hidden Fees
Calculating your quotes
Author: Russell Cain
Published: February 10, 2017
  • How To Choose The Right Income Protection Policy

    To find the right income protection policy that will suit your needs and budget you first have to understand all the policy types, additional options and premium structures available to you. We explain some of the most important factors you need to consider before making a decision.

  • Small Business Insurance Guide

    Protect your small business and your family by taking out income protection, business expenses and keyperson insurance cover!

  • Best Income Protection Insurance

    3 Easy steps to finding the best income protection insurance Australia has to offer. Becoming informed is the first step, we unveil the 3 easy steps for you

  • Income Protection Insurance Quotes

    Income protection insurance pays a monthly benefit if you’re unable to work due to illness or injury. Instantly compare income protection quotes from 10 leading insurers’ online (no personal details required) and find great value cover for you and your family.

  • Income Protection Insurance Waiting Periods

    Short waiting periods ensure your benefits are paid sooner but premiums cost less with longer wait periods. Compare waiting period options & costs online.

  • When is Income Protection Tax Deductible?

    Understand how to qualify to be able to claim your premiums for income protection as a tax deduction. We explain what portion is deductible & how to claim.

Ask an Expert?

Share This