APRA suspends policy contract term measure for individual disability income insurance
The Australian Prudential Regulation Authority (APRA) has sent a letter to life insurers and friendly societies announcing its decision to suspend the implementation of the policy contract term measure for individual disability income insurance (IDII).
The letter follows APRA's decision in May 2021 to defer the implementation of this measure to 1 October 2022, to allow additional time for the development of solutions that meet APRA’s expectations to address the risk of unsustainable contract terms.
APRA will suspend the IDII policy contract term measure for at least two years, at which time it will reassess its position.
The letter to industry is available on the APRA website at: Individual disability income insurance: Suspension of policy contract term measure.
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The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, mutuals, general insurance and reinsurance companies, life insurance, private health insurers, friendly societies, and most members of the superannuation industry. APRA currently supervises institutions holding around $9 trillion in assets for Australian depositors, policyholders and superannuation fund members.