Premium rate increases

Base premium rate adjustments, which influence your policy premium, are sometimes necessary to ensure the long-term strength of the insurance pool that protects all customers. In recent years, the cost of providing cover has risen, driven in part by more claims and longer recovery times than we expected, as well as broader economic pressures across the industry. For example, the average amount we paid per IP claim increased by 36% in the past year. 

The base premium rate changes will vary depending on your specific product and cover and range from 0–30%.¹ 

^{1 The percentages shown above reflect changes to the underlying base premium rates only and will apply for all policies in products to which this base premium rate applies, including any options. Your total premium at renewal may increase by more than this, as it can also be affected by other factors such as your age, discounts applicable and any inflation adjustments applied to your cover. Percentages shown may differ due to calculation methodology and rounding.} 

If your product is one of those affected by the base premium rate increases, these new premiums will apply from your next policy anniversary. You’ll be able to view your new premium amount when you receive your new premium notice or annual statement.

We calculate your premiums based on a range of factors including your age, occupation, and lifestyle. The structure, options, and amount of cover you have selected will also impact the cost of your cover. When you apply for cover, we ask you a series of questions to ensure we can provide you with the cover and determine whether we need to apply any special terms. These factors are used to calculate your premium and are applied to the base premium rates for your cover, which we’ll review over time.  Factors are things such as:

• Your age
• Your gender
• Your health and family history
• Your pre-existing medical conditions
• Your occupation
• Your lifestyle choices (smoker status, sports and recreational pursuits)
• Your selected premium structure (for example stepped and level)
• Any discounts (if you are eligible)
• Policy fees (if applicable)
• Your state of residence (this determines any stamp duty that may be applicable)

Read more about how variable premiums and variable age-stepped premiums are calculated (previously referred to as level and stepped premiums, respectively).

Yes. If you have any optional benefits (for example, additional or add-on cover options), their cost may also increase. This is because these options are typically priced as a percentage of your main benefit, so when the underlying premium rate changes, the cost of those options will also adjust accordingly.

Yes, you may have the option to remove CPI increases. Turning off CPI will stop your sum insured from automatically increasing each year to cover inflation; this will reduce the change in your premiums. You can choose to either decline the increase for a year or have the feature permanently removed at any time. It’s important to consider the potential long-term impacts on your cover amount before making any changes. You can learn more about inflation adjustments here or opt out via this online form. 

Your cover remains in place even if your health changes over time. If you cancel and reapply later, your premiums may be higher, you may not get the cover you want, or exclusions may apply on your cover if your health has changed. Rather than cancelling, you may wish to consider adjusting your cover to better suit your current needs and budget. A financial adviser can help you review your options and find the right balance. 

If you’re considering switching to a different product, this may require new underwriting. The type of cover you had originally may change, and premium loadings and/or exclusions may apply.

We highly recommend speaking to your financial adviser or our Customer Solutions team before switching to ensure you stay protected: 133 731 option 4 ext. 50012, available Monday to Friday, 9.00am to 5.00pm (AEST/AEDT).