Corporate Life Insurance :: News
SHARE

Share this news item!

AustralianSuper Announces Significant Insurance Premium Hikes

Responding to Rising Mental Health and Disability Claims

AustralianSuper Announces Significant Insurance Premium Hikes?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.

AustralianSuper, the nation's largest superannuation fund, has announced substantial increases in insurance premiums for nearly half of its members.
This decision comes in response to a significant rise in mental health and disability claims, which have escalated the cost of providing coverage.

The fund, managing approximately $410 billion in assets, will implement the following average annual premium increases:

  • Total and Permanent Disability (TPD) cover: approximately 40%
  • Death cover: around 20%
  • Two-year income protection: close to 38%

For instance, a 45-year-old in a white-collar role will see their basic cover cost rise to about $236 per year, while their blue-collar counterpart will pay approximately $526.

These adjustments affect roughly 1.7 million of AustralianSuper's 3.6 million members who hold insurance through the fund. The surge in claims, particularly from younger individuals unable to return to work due to mental health conditions, has been a significant factor in this decision. Industry data indicates that mental health-related TPD claims have doubled in value from about $1.2 billion in 2019 to $2.4 billion in 2024, now constituting roughly one in three such claims.

Other super funds are also adjusting their premiums. CareSuper, for example, has informed members of rate increases closer to 10%, marking the first rise in three years.

While group life cover through superannuation remains generally more affordable than retail policies obtained through advisers, these premium hikes highlight the ongoing challenge of balancing comprehensive protection with affordability. As claims trends continue to evolve, super funds, regulators, and insurers will need to navigate the delicate trade-off between maintaining sustainable insurance offerings and ensuring accessible coverage for members.

Published:Wednesday, 27th May 2026
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Insurance News

Life Insurance Code Review Signals Higher Standards for Insurers
Life Insurance Code Review Signals Higher Standards for Insurers
01 Jul 2026: Paige Estritori
The independent review of the Life Insurance Code of Practice has concluded with 85 recommendations that could reshape how Australian life insurers design products, communicate with customers and manage claims. Released on 30 June 2026, the final report places particular emphasis on mental health cover, vulnerable customers, First Nations customers, claims handling, premium transparency and the enforceability of the Code. - read more
Life Insurance Demand Strengthens as Businesses Reassess Protection Needs
Life Insurance Demand Strengthens as Businesses Reassess Protection Needs
24 Jun 2026: Paige Estritori
New market data reported by Plan For Life points to a notable rebound in parts of Australia’s life insurance sector, with individual lump sum insurance new business rising 6.7% across the 2025 calendar year and individual income protection new business increasing 8.3%. While overall risk new business was lower, that decline was attributed largely to group risk sales returning to more normal levels after earlier periods of heightened activity. - read more
APRA and ASIC Advocate for TPD Insurance Reforms
APRA and ASIC Advocate for TPD Insurance Reforms
17 Jun 2026: Paige Estritori
The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) have jointly called on life insurers to take decisive action to address mounting sustainability pressures in the Total and Permanent Disability (TPD) insurance market. This appeal follows a high-level industry roundtable discussion involving senior executives from 19 insurers and reinsurers, as well as representatives from Treasury and the Council of Australian Life Insurers (CALI). - read more
APRA's New Capital Treatment Reforms for Longevity Products
APRA's New Capital Treatment Reforms for Longevity Products
10 Jun 2026: Paige Estritori
The Australian Prudential Regulation Authority (APRA) has announced significant reforms to the capital treatment of longevity products, including annuities, aimed at bolstering the sustainability and affordability of retirement income products. These changes are set to take effect from 1 July 2026. - read more


Life Insurance Articles

What Every Business Owner Should Know About Group Life Insurance
What Every Business Owner Should Know About Group Life Insurance
As a business owner in Australia, protecting your venture against unforeseen events is crucial. Business insurance plays a vital role in safeguarding your company's financial stability and longevity. Group life insurance, a specific type of business insurance, is designed to cover multiple employees under a single policy. - read more
Insurance Essentials: A Business Owner’s Checklist for Risk Reduction
Insurance Essentials: A Business Owner’s Checklist for Risk Reduction
For many business owners, insurance may seem like a complex and daunting topic. However, understanding the basics of business insurance is crucial in safeguarding your enterprise against unforeseen risks. Business insurance serves as a safety net, providing coverage for various potential incidents that could impact your company's financial health and stability. - read more
Insurance Made Easy: Understanding Your Corporate Coverage Options
Insurance Made Easy: Understanding Your Corporate Coverage Options
Corporate insurance might not be the first thing on your mind when running a business, yet it plays a crucial role in safeguarding your enterprise. Whether you're a small local shop or a bustling company, having the right insurance ensures that your business can withstand the unexpected. - read more
Transform Your Employee Benefits Package with Corporate Life Insurance
Transform Your Employee Benefits Package with Corporate Life Insurance
Corporate life insurance is a policy taken out by a business to cover the lives of its employees. It serves multiple purposes, including providing a financial safety net for both the company and the employee's family in the unfortunate event of a death. Unlike personal life insurance, this type of policy is owned by the business, and its benefits can be designated to protect a company’s financial interests or support the employee's beneficiaries. - read more

Knowledgebase
Whole Life Insurance:
A type of life insurance that provides coverage for the insured's entire lifetime, with a savings component that builds cash value.