TPD flagged as another problem area for insurers

Mike Taylor

Managing Editor/Publisher, Financial Newswire

8 March 2023

Total and Permanent Disability (TPD) insurance is looming as another problem area for the life insurance industry similar to the problems experienced around individual disability income insurance (IDII), a Financial Newswire conference has been told.

MLC Life chief life insurance officer, Michael Rogers told the Life Insurance Outlook Conference in Sydney that TPD represented an area in which issues were already manifesting and might need to be addressed by the industry.

Speaking on a panel alongside TAL chief executive, Brett Clark and ClearView managing director, Simon Swanson, Rogers said he believed that after the experience of IDII, he believed TPD needed to be closely monitored.

Both Swanson and Clark acknowledged the issues which had led to the intervention of the Australian Prudential Regulation Authority (APRA) with respect to IDII had been embarrassing but necessary.

Clark said that the situation which existed before the APRA intervention could not have been sustained.

Discussing current profitability levels for Australian life insurers, the panel agreed that they had been greatly assisted by the rising interest rate environment.