Corporate Life Insurance :: News
SHARE

Share this news item!

New TPD Insurance Products Aim to Improve Affordability and Sustainability

Australian Insurers Introduce Innovative Solutions to Tackle Rising Claims Costs

New TPD Insurance Products Aim to Improve Affordability and Sustainability?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.

In response to escalating claims costs and sustainability concerns, Australian insurers have unveiled innovative Total and Permanent Disability (TPD) insurance products designed to enhance affordability and long-term viability.
These developments were highlighted during the recent Entireti Risk Summit Roadshow events, where industry leaders discussed new product designs aimed at addressing these pressing issues.

Acenda introduced the TPD Severity Option, which moves away from traditional occupational definitions. Instead, it assesses the severity of a claimant's impairment using medical frameworks such as Whole Person Impairment (WPI) measures for physical conditions and the Psychiatric Impairment Rating Scale (PIRS) for mental health claims. This approach allows for a more objective assessment of disability, focusing on the actual impairment rather than the claimant's occupation. The product is priced approximately 50% lower than traditional 'own occupation' TPD and around 25% below 'any occupation' pricing, offering a more affordable option for policyholders.

Zurich's Continuous Care Option shifts the focus from permanent inability to work to ongoing care needs. This product assesses whether a claimant requires continuous care, regardless of their employment status. It is priced around 70% less than standalone 'any occupation' TPD and 90% lower than 'own occupation' cover. Notably, Zurich has retained mental health eligibility within this product, introducing greater objectivity through the use of the PIRS.

TAL's TPD Support Option offers a traditional lump sum benefit for severe injuries and illnesses but modifies the assessment and payment structure for conditions with uncertain recovery trajectories. For certain mental health, fatigue, and functional disorders, eligible claimants receive 20% of the sum insured at 12-month intervals, provided they continue to meet eligibility criteria. This approach aims to improve long-term sustainability while keeping claimants connected to medical treatment and recovery pathways. The product delivers premium savings of around 20% for white-collar 'own occupation' clients, with smaller savings for blue-collar occupations.

These innovative products reflect a broader industry trend towards more sustainable and affordable TPD insurance solutions. By focusing on objective impairment assessments and ongoing care needs, insurers aim to provide better value to policyholders while ensuring the long-term viability of their offerings.

Published:Wednesday, 3rd Jun 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 Claims Data Shows Why Workplace Cover Still Matters
Life Claims Data Shows Why Workplace Cover Still Matters
16 Sep 2026: Paige Estritori
New industry claims reporting from Australia’s life insurance sector has reinforced an important point for employers: life cover is not an abstract employee benefit. It is a financial safety net that is tested every year by death, disability, serious illness and extended time away from work. - read more
What a Steadier Life Insurance Market Means for Employers
What a Steadier Life Insurance Market Means for Employers
09 Sep 2026: Paige Estritori
Fresh life insurance performance data from APRA points to a market that is steadier than the disrupted conditions seen in recent years, but not one where employers can afford to be passive. For CFOs, HR leaders and directors, the message is less about a single quarterly result and more about the operating environment behind corporate life insurance pricing, claims service and product design. - read more
Advice Reform Sharpens the Focus on Workplace Life Insurance
Advice Reform Sharpens the Focus on Workplace Life Insurance
02 Sep 2026: Paige Estritori
Australia’s debate over financial advice reform has entered a practical phase, with renewed industry attention on how life insurers, superannuation funds and employers can give people more useful guidance without crossing into unsuitable or conflicted advice. For corporate buyers, this is not a technical policy argument. It affects whether staff understand their default group cover, whether executives receive appropriate protection, and whether families can rely on a benefit when something goes wrong. - read more
Why Clearer Insurance Communication Matters for Employers
Why Clearer Insurance Communication Matters for Employers
26 Aug 2026: Paige Estritori
ASIC’s latest scrutiny of insurance in superannuation communications is a timely reminder that life cover is only valuable when people understand when it applies, what it pays, and where the gaps may sit. For employers, CFOs and HR leaders, this is not just a superannuation fund issue. It goes directly to workforce wellbeing, benefit design and the way organisations explain financial protection to their people. - read more


Life Insurance Articles

Tax Considerations for Corporate Life Insurance in Australia
Tax Considerations for Corporate Life Insurance in Australia
Corporate life insurance can support employees, protect key people and strengthen business continuity, but its tax treatment depends on the policy purpose, ownership, beneficiary and how premiums and proceeds are structured. - 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
Key Person Life Insurance for Australian Businesses: What It Covers and When It May Be Used
Key Person Life Insurance for Australian Businesses: What It Covers and When It May Be Used
Key person life insurance can help an Australian business manage the financial impact of losing an owner, director, partner or specialist employee whose contribution is critical to revenue, debt servicing or continuity. - read more
Corporate Life Insurance in Australia: Types, Ownership and How Cover Works
Corporate Life Insurance in Australia: Types, Ownership and How Cover Works
Corporate life insurance in Australia can refer to several different arrangements, including group employee cover, key person insurance, company-owned policies and voluntary employee-paid options. Understanding who owns the policy, who is insured and who receives the benefit is essential before comparing cover. - read more

Knowledgebase
Grace Period:
A time period after the premium is due during which an insurance policy remains in force even if the premium has not yet been paid.