Damien Mu

In response to the increasing complexity of disability claims, leading life, health and wellbeing insurer AIA Australia has launched a new retail TPD product, TPD CORE, to give customers and advisers greater clarity and consistency in how severe and permanent disability is assessed.

TPD CORE retains the features customers and advisers value in traditional TPD insurance: the benefit is paid as a lump sum, and for physical, objectively assessed conditions, there is no fundamental change.

Where TPD CORE differs is in using clearer requirements for mental health, chronic pain and fatigue conditions, so there is greater transparency around what evidence is needed, how severity is assessed and how permanence is determined.

Traditional disability cover was designed for claims with clear and observable physical impairment; however, the modern claims landscape is markedly different, and as a result, traditional TPD is under growing strain. Mental health conditions now account for around one-third of TPD claims paid across the industry and more than $2 billion in annual payouts, almost double the level of five years ago.

TPD CORE was developed to address this challenge while maintaining meaningful protection for customers. Rather than relying predominantly on diagnosis alone, TPD CORE places greater emphasis on functional impairment and whether a condition has resulted in severe, enduring and permanent disability consistent with the purpose of TPD.

Damien Mu, Chief Executive Officer and Managing Director of AIA Australia, said that Australia’s worsening mental health crisis required insurers to think differently about their product set and how they best support people.

“We need to rethink how we view mental health conditions, because a diagnosis is not a life sentence. We want to focus on supporting people to live and work while effectively managing their mental health, which includes encouraging early intervention, as well as recovery and return-to-work where this is possible for someone.

“TPD CORE plays an important role in our overall approach to playing a more active role in the mental health of our customers, so that we can ensure that claimants with severe, permanent and work-ending conditions are paid a lump sum, and less severe, episodic mental health issues receive other types of support”, said Mr Mu.

TPD CORE has been designed to work alongside income protection cover, and wellbeing and recovery support through AIA Embrace, to provide customers with comprehensive disability coverage.

TPD CORE was developed through collaboration across AIA Australia’s product, medical, claims and pricing teams and incorporated consumer and adviser research.

The design has been extensively tested against historical claims experience to support both clinical integrity and long-term sustainability. This work has enabled the introduction of a five-year rate guarantee, providing greater certainty for customers and advisers.

TPD CORE is available for AIA’s Retail Customers from 31 August 2026.

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Damien Mu

Leading life, health and wellbeing insurer AIA Australia has announced a new Premier Partnership with Beyond Blue, amplifying its long‑term commitment to improve the mental health outcomes of Australians.

The partnership brings together AIA Australia’s leadership in the life and health insurance industries with Beyond Blue’s national reach and deep expertise on mental health.

With a shared focus on prevention and early intervention, Beyond Blue and AIA Australia will work together to address rising mental health challenges and reduce the number of Australians reaching crisis before seeking help.

To kick off the partnership, the organisations joined forces with the Melbourne Storm for its Mental Health Round, in an effort to encourage people to Tackle Tough Together.

Around 43 per cent of Australians have experienced a mental health condition in their lifetime, with anxiety and depression affecting millions of people across all life stages.^[1] Despite record levels of public and private investment in mental health care, prevalence continues to rise, reflecting a system that is geared towards acute and crisis care, rather than prevention and early support.^[2]

AIA Australia has reported an exponential increase in mental health-related claims, with mental health claims rising from around 15% of all disability claims in 2014, to approximately 26% in 2025 – a figure that continues to increase in 2026.

Beyond Blue CEO Georgie Harman AO said, “Accessing support early for yourself or someone you care about can prevent problems escalating. But too many people aren’t able to get that early support, only getting help once they’re really distressed or in crisis – and sometimes struggling for up to 10 years. At the same time, too many Australians simply aren’t getting the support they need, with a system still geared towards responding to crisis rather than preventing it.

“Through this partnership with AIA Australia, Beyond Blue has an opportunity to reach people sooner, meeting them where they are – in workplaces, communities and everyday moments – with effective, practical services and tools before things escalate.”

AIA Australia CEO Damien Mu said he believed the partnership held huge potential to drive meaningful change. “At AIA Australia, our purpose is to make a difference in people’s lives. We’re pleased that this partnership with Beyond Blue will help us achieve our ambition to help Australians live healthier, longer and better lives.”

Under the partnership, AIA Australia and Beyond Blue will prioritise:

• Earlier intervention and prevention, including insights, tools and digital solutions that encourage people to seek help sooner
• Workplace mental health – supporting employers to address psychological risks and promote mentally healthier work environments
• Thought leadership and advocacy, including policy reform aimed at reducing systemic barriers to early mental health support
• Community reach and impact, leveraging Beyond Blue’s engagement with one in six Australians each year

Mr Mu said that both organisations were eager to start working closely together and change the narrative on mental health.

“As a life insurer, we unfortunately see people when their mental health has deteriorated to a point where they are unable to work. What’s currently described as ‘early intervention’ is often happening quite late in someone’s experience and after they’ve lodged a claim.

“We believe that there are many strong opportunities to change this. For example, employers could offer targeted mental health support in the workplace that can deliver real preventative impact.”

“As a nation, we have become trapped in a “sick‑care” cycle. By focusing more on early warning signs and underlying contributors, we can support people sooner and reduce the risk of their mental health deteriorating.”

——–

Notes:
[1] ABS National Study of Mental Health and Wellbeing 2020-2022
[2] Ibod.

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Damien Mu

Leading life, health and wellbeing insurer AIA Australia has released its inaugural Impact Report, showcasing the meaningful benefits it delivered in 2025 to customers and the community through financial protection, early intervention and wellbeing support.

The report highlights how AIA Australia supported customers across the nation through some of life’s most challenging moments, paying more than $2.4 billion across more than 34,000 claims during the year.

This includes:

• $726 million across 6,365 Total and Permanent Disability (TPD) claims
• $864 million across 22,777 Income Protection (IP) claims
• $146 million across trauma claims

These outcomes reflect AIA Australia’s promise of providing financial certainty with care, empathy and speed when customers need it most. Mental health claims were the leading cause of claim across both retail and group insurance, prompting ongoing interventions from the insurer’s wellbeing and product teams to ensure product sustainability and appropriate support is prioritised.

Beyond claims, the report highlights AIA Australia’s commitment to shared value through its focus on prevention, industry and environmental sustainability and social impact.

Through its AIA Embrace wellbeing ecosystem, the company continues to invest in programs that support customers before, during and after a claim, helping them improve their health, wellbeing and long-term resilience through prevention, early intervention and recovery support.

In 2025:

• Nearly 10,000 customers were referred to AIA Australia’s in-house Wellbeing Team
• Participants in the Mind Coach program reported an 83% improvement in psychological symptoms, outperforming industry benchmarks*
• Customers completing the Pain Coach program reported a 91% improvement in function, significantly exceeding industry benchmarks*
• Cancer Coach referrals increased by 20%, driven by earlier engagement and intervention
• 67% of customers participating in return-to-work focused rehabilitation programs successfully returned to work
• AIA Australia’s Early Support absence management programs achieved a 65% return-to-work rate, helping employees who had been absent from work for ten consecutive days reconnect with work sooner

These outcomes highlight the value of early, targeted support in improving recovery, reducing claim duration and delivering better long-term wellbeing outcomes.

The report also showcases the impact of AIA Vitality, which experienced one of the strongest growth periods in its history in 2025, reaching 280,000 members. Growth was supported by the launch of AIA Vitality with a major Group Insurance partner, enabling insured superannuation members to connect everyday healthy behaviours with long-term financial wellbeing through regular superannuation contributions.

Within the first three months of launching, members had directed more than 6,500 Active Benefit rewards into their superannuation accounts, totalling $32,500. On average, 31% of members who achieved their Active Benefit target chose to contribute their reward to superannuation, highlighting growing engagement with initiatives that link better health behaviours to improved long-term financial outcomes.

More broadly, AIA Vitality members completed more than 70,000 preventative health checks, more than 1.5 million mental wellbeing activities, and over 800,000 gym visits during the year, demonstrating strong engagement in proactive health management and wellbeing. In 2025, AIA Vitality members redeemed $4.6 million in Active Benefit rewards, with $3.8 million directed towards cost-of-living relief, including Woolworths vouchers and Commonwealth Bank savings contributions.

AIA Australia also continued to invest in innovation, including the launch of AIA Exchange, helping create a more connected, intuitive and efficient experience for customers, super funds and administrators.

AIA Australia Chief Executive Officer and Managing Director Damien Mu said the report reflects the organisation’s commitment to delivering meaningful impact beyond insurance.

“At AIA Australia, our purpose is to make a difference in people’s lives. While paying claims remains one of the most important ways we deliver on that promise, we’re steadfast on helping Australians stay healthier, recover sooner and achieve better long-term outcomes.”

“AIA’s Impact Report demonstrates the power of combining financial protection through insurance with prevention, early intervention and wellbeing support. Whether it’s helping a customer through cancer treatment, supporting their mental health recovery, or enabling a successful return to work, our goal is to create meaningful impact at every stage of life’s journey.”

“We’re incredibly proud of what our people, partners and customers have achieved together in 2025, and we remain committed to helping Australians live healthier, longer, better lives.”

The inaugural Impact Report provides a comprehensive view of AIA Australia’s contribution to improving the physical, mental and financial wellbeing of Australians. It highlights not only the significant claims support provided during times of need, but also the growing impact of prevention, early intervention and recovery programs that help people achieve better outcomes throughout their lives.

Read the report.

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Cupitt

Australian workers are increasingly concerned about their financial security, yet many may not realise that life insurance inside their super could already be working in the background to protect them and the people they love.

The latest CALI Life Insurance Sentiment Tracker found two in five Australians feel uncertain about their financial situation over the coming year.

Council of Australian Life Insurers (CALI) CEO Christine Cupitt said insurance through superannuation was one of the most accessible, yet least understood, forms of financial protection.

“Many people may already have life insurance switched on inside their super, giving them access to death and disability cover,” Ms Cupitt said.

“This protection may be quietly working in the background, but it isn’t a set-and-forget benefit. Your job, income, family, mortgage and working hours can all change, and your cover needs to keep pace.”

Only one in three Australians said they understood the life insurance products and benefits they had, despite superannuation remaining one of the most common ways working Australians protect their future.

Ms Cupitt said financial pressures could also lead some Australians to rethink their cover without fully appreciating what they could be missing out on.

“People are dealing with a lot. Budgets are stretched, living costs are increasing and that could get worse if you are forced out of your income through illness or injury,” she said.

“That’s why we encourage people to regularly check in with their insurance cover rather than wait until their life gets turned upside down to find out what they do or don’t have.”

In the past 12 months, life insurers supported about 54,000 claims for Australians and their families with almost $6 billion in payments through group superannuation policies.

Ms Cupitt said the payments showed that life insurance through super was already at work financially supporting thousands of Australian workers and their families facing illness, injury, disability, or death.

“Almost $6 billion in payments in 12 months shows this protection is not a minor consideration. It is an important part of Australia’s financial safety net.”

Ms Cupitt said Australians also needed better access to simple, reliable information about the insurance they already had.

“For many Australians, accessing a financial adviser is out of reach. But they should be able to get straightforward, professional help to understand the cover they have,” she said.

CALI believes the Federal Government’s Delivering Better Financial Outcomes reforms would help close Australia’s advice gap by allowing life insurers to provide simple advice about their own products when customers ask for help.

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Daniel Waller

As the pool of insurer partners shrinks, a more deliberate approach to panel construction, one that prioritises resilience alongside product fit, is becoming critical to protecting client outcomes and business stability.

Think of your insurer panel like an investment portfolio. A client who puts everything into a single stock might be fine, until they’re not. The same logic applies to how advisers structure their insurer relationships. And with consolidation accelerating across Australia’s life insurance market, that logic has never mattered more.

Insurers are merging, acquiring and restructuring in pursuit of scale and efficiency. MLC Life Insurance and Resolution Life Australasia merged late last year to form Acenda^[1], creating one of Australia’s largest life insurers. Zurich announced a $415 million acquisition of ClearView^[2], expected to complete later this year. And AIA absorbed the Integrity Life portfolio^[3] – a business that had already exited new advice clients – completing that transfer in early 2025. Three significant moves in the space of 18 months.

None of this is inherently problematic. Bigger players can mean stronger capital bases, broader product ranges and more invested distribution infrastructure. But for advisers, fewer players means something else entirely: concentration risk is becoming one of the most underappreciated business risks in the industry.

When fewer insurers account for a greater share of adviser business, the impact of any change, whether it’s repricing, underwriting adjustments, service disruptions or strategic shifts, becomes amplified across client portfolios. In a more concentrated market, the question is no longer just which insurer you choose. It’s how exposed your clients are to that insurer’s decisions when conditions change.

Concentration risk isn’t just a business risk – it’s a client risk

Over-reliance on a single insurer can quickly become a client experience issue at scale. This becomes particularly important during periods of merger integration or structural change. Even when the long-term rationale for a merger is sound, systems need to be combined, teams restructured and service models reset^[4]. During that period, advisers may see delays in underwriting decisions, inconsistent service experiences or longer claims processing times.

These issues rarely stay operational. A delayed underwriting outcome can feel like uncertainty. A slower claims process can feel like a lack of support at the very moment clients need it most. A sudden pricing change can raise questions about whether the original recommendation still holds. Over time, those experiences affect trust, retention and the perceived value of advice.

The challenge compounds when a large proportion of clients sit with the same provider. A repricing decision, a change to the service proposition, or a shift in underwriting appetite can trigger a wave of client reviews and conversations simultaneously. What might otherwise be a manageable insurer adjustment becomes a business-wide event, affecting large segments of the client base at once and increasing the operational burden on advisers.

The issue isn’t insurer quality. Even the strongest insurers experience periods of change. The issue is concentration, and how exposed your clients are to any one provider’s decisions over time. An adviser who has placed the majority of their book with a single insurer doesn’t just face a service issue when that insurer hits turbulence. They face a client trust issue, a relationship management issue and an operational issue, often simultaneously and at scale.

What matters when assessing insurer partnerships today

Adviser panels have traditionally been built around client fit, product competitiveness and operational efficiency. In a consolidating market, those criteria aren’t sufficient on their own. The question to add is a forward-looking one: how will this insurer behave over the next three to five years, and how will my clients experience that?

That means looking beyond the usual product analysis to factors such as:

• Consistency of underwriting philosophy over time, not just current appetite but how stable it has been through previous periods of ownership change or market pressure.
• Claims reputation, particularly during disruption. Claims performance in a steady state tells you something. During an integration period, it tells you much more.
• Service capacity and responsiveness during change. How has this insurer managed continuity through previous system transitions? The answer is usually visible if you ask peers who lived through it.
• Clarity of long-term strategic intent in the advised channel. Is advice central to this insurer’s growth strategy, or a distribution priority that could be deprioritised when capital allocation decisions are made?

Ownership structure is one of the most underused lenses in panel assessment. An insurer that answers to shareholders operates under different incentives to one that answers to policyholders, and those differences show up in decisions around repricing, service investment and long-term product design. Understanding those dynamics, whether the insurer is listed, privately owned or member-owned, gives advisers a more complete picture of how a partner is likely to behave when conditions change.

A three-step lens for reviewing insurer relationships

1. Look beneath the surface. Go beyond product and pricing to assess factors such as financial stability, ownership structure and long-term strategic intent. Consider how these elements shape decision-making over time, particularly in areas such as pricing, service investment and underwriting philosophy, and how aligned those decisions are with member or customer outcomes.
2. Consider how change may play out. Think through how events such as mergers, acquisitions or shifts in capital priorities could affect service, underwriting and client outcomes. Focus on how those changes are likely to be experienced in practice, not just how they are communicated.
3. Sense-check against real-world experience. Draw on peer insights to understand how insurers are performing through periods of change. Pay close attention to consistency across service, underwriting and claims, particularly when conditions are less stable.

Diversification enables better client outcomes, not just risk mitigation

Diversification is often treated as a defensive move – a hedge against things going wrong. But that framing undersells it.

A well-constructed panel improves the quality of advice itself, giving advisers the flexibility to match clients more precisely to the provider best suited to their needs and risk profile, adapt as insurer settings change, and avoid forced compromises when one provider shifts position.

Different insurers bring different strengths. Larger players offer scale, capital depth and product breadth. Specialist providers bring flexibility, niche expertise and responsiveness. And member focused insurers can introduce a longer-term perspective, less influenced by shareholder return dynamics and more oriented toward pricing stability and reinvestment in service^[5]. A thoughtful mix of capabilities, models and incentives, rather than simply more providers, is what creates genuine resilience.

Panels can’t be static in a market that isn’t

Consolidation will continue. So will the integration periods, product resets and strategic pivots that follow. That’s not a reason for alarm, it’s a reason for intentionality.

The advisers who stand out aren’t necessarily those with the largest panels or the most provider relationships. They’re the ones who have thought carefully about what their panel is actually exposed to, and why, who stay curious about how the market is shifting, ask harder questions of their insurer partners, and treat panel construction as a living part of their practice.

A diversified investment portfolio doesn’t just protect against loss. It creates the conditions for better outcomes. A well-constructed insurer panel works the same way.

By Daniel Waller, Head of Distribution

———-

Notes:
[1] https://www.insurancebusinessmag.com/au/news/life-insurance/acenda-group-formed-after-resolution-life-global-acquisition-closes-555138.aspx
[2] https://finance.yahoo.com/news/zurich-australia-acquire-clearview-wealth-113928138.html
[3] https://www.insurancewatch.com.au/life-insurance-companies.html
[4] https://www.insurancebusinessmag.com/us/news/mergers-acquisitions/bigger-isnt-better-why-scaledriven-insurance-manda-is-falling-out-of-favor-571998.aspx
[5] https://www.insuranceandestates.com/mutual-insurance-company-vs-stock-insurance-company/

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Justin Delaney

Zurich Financial Services Australia (Zurich) has hosted its fourth bi-annual Mental Health Roundtable, attended by key clinical and civil society representatives to discuss trends surrounding mental health diagnosis, treatment and resilience, including the evolving role of life insurance. 

Attendees were presented with new Zurich analysis which quantifies the projected rise and impact of mental health conditions in six countries, including Australia, by 2030.

An in-depth discussion was then facilitated to explore principles and ideas for the reform of disability insurance products, with a view to specifically address current design limitations and unintended consequences for those with mental health conditions.

Justin Delaney, Chief Executive Officer, Zurich said: “After the government, life insurance is the largest financial safety net for Australians with mental health conditions. Our data shows that prevalence is rising, which is putting significant pressure on individuals and their quality of life, informal and formal support networks, and the broader economy.”

“Disability insurance products are an important part of this financial safety net, however, the suitability of these products for people with mental health conditions has become increasingly challenging.”

“As we seek to innovate these products, we recognise the importance of doing so collaboratively. Our recent Roundtable was a great opportunity to collectively explore product re-design possibilities, and understand how any proposed changes could integrate with, or impact, other parts of the mental health ecosystem,” Mr Delaney said. 

Jennifer Keyes, Head of Product Innovation and Mental Fitness Impact, Gotcha4Life said: “Discussions like these are important because they help ensure the needs of people experiencing mental health challenges remain at the centre of any service design or decision-making, and that those decisions are informed by expertise and perspectives from across the mental health ecosystem.”

Michael Marthick, Director of Insurance, Spectrum.Life ANZ said: “Disability insurance has a unique reach into the lives of Australians experiencing mental health conditions. Used well, that’s a platform for genuine support – not just financial protection. Roundtables like this are how we move from good intentions to practical reform.”

Catherine Day, Advisor, It Pays to Care said: “Thank you to Zurich for opening up an important discussion about mental health challenges in Australia through the Roundtable discussion. It provided a valuable opportunity for a diverse group of people to challenge the status quo, share perspectives, and explore new approaches.”

Since its last Mental Health Roundtable in November 2025, Zurich has:

• Introduced a new social support rehab program for claimants who are vulnerable or have a mental health condition;
• Commenced a pilot using a leading mental health telemedicine provider to improve efficiency and specialist access for claimants requiring a psychiatric opinion; and
• Committed to a chronic pain management program pilot which addresses mental health as a pain modifier.

The fourth Zurich Mental Health Roundtable, held in May 2026, was attended by representatives from the Royal Australian and New Zealand College of Psychiatrists, Lifeline Australia, SANE Australia, Gotcha4Life, This Way Up, Bupa, Spectrum.Life and It Pays to Care.

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L to R: Rob Vitnell, Daniel Musumeci, Damien Jones

Australian Financial Risk Management (AFRM), a specialist risk-only life insurance advice firm, has reached the milestone of managing over $400 million in life insurance claims paid to clients. The achievement comes from their scale and expertise in risk, built from almost 30 years in business.

Rob Vitnell, Managing Director and Adviser, said: “This milestone is a reminder of the many families we’ve supported when they needed it most. In their darkest times, we’ve been there to help navigate the complexities of life insurance. Our scale and expertise in life insurance is unique as it is our sole focus.”

Daniel Musumeci, Executive Director and Senior Adviser, added: “Risk advice works best when we collaborate with referral partners, particularly financial planners. Outsourcing allows our partners to focus on what they do best, whilst clients receive the best outcomes delivered by a team of specialists.”

Latest figures from the Council of Australian Life Insurers (CALI) noted only 185 risk only advisers across Australia, underscoring the lack of experts in the industry.

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Thomas Lillelund

Despite seeming predictable in hindsight, Black Swans are unexpected or unforeseen events that are highly disruptive and economically damaging. Examples include the 9/11 attacks of 2001 in the US, the 2008 global financial crisis, and the Covid-19 pandemic. Allianz Research estimates cumulative global GDP losses from the pandemic between 2020 and 2023 to be in the region of US$12trn.In addition to the huge financial and business costs, such events typically have long-lasting implications, resulting in geopolitical and societal shifts that continue many years after the initial event.

According to new Allianz Risk Barometer analysis, more than half of the 3,000+ respondents (51%) identify a global supply chain paralysis due to a geopolitical conflict as the most plausible Black Swan scenario globally which could impact their company in the next five years. Fear of a global internet outage ranks second (47%) which reflects the increasing awareness of cyber and artificial intelligence (AI) risks among business leaders.

Respondents in Asia Pacific also identified a global supply chain paralysis and global internet outrage as the two most plausible Black Swan scenarios; the former is ranked first in China and Hong Kong, Singapore, and South Korea, while the latter is ranked first in Australia, India, Japan, Malaysia, and Thailand.

Allianz Commercial CEO Thomas Lillelund comments: “Although Black Swan events are not seen to be immediately likely, these rare, high-impact scenarios are perceived as increasingly plausible and should be considered by executive boards given their potential consequences. Growing interconnectivity across both physical and digital supply chains means disruptions now cascade much faster and can turn into major losses. In today’s fragmented geopolitical environment, companies must double down on resilience and integrated risk management to ride out the next perfect storm.”

Geopolitics is a key driver for Black Swans
Given the current geopolitical environment, it is no surprise that supply chain paralysis resulting from a geopolitical conflict is regarded as the most plausible Black Swan scenario. The threats of tariffs, trade wars and protectionism, as well as disruption to supply chains and shipping caused by regional conflicts in the Middle East and Russia / Ukraine are at the top of every board agenda. Allianz Research estimates that cumulative GDP losses over a two-year horizon triggered by a global supply chain disruption on the scale of the war in Ukraine could total US$1.5trn. In fact, political-related risks stand out as a leading potential trigger for Black Swan events, according to respondents. Mass social unrest and political instability is regarded as the fourth most plausible scenario globally (29%) and is a top three risk in the Americas (31%) and Africa and the Middle East (41%) regions, as well as in France (42%), for example. A sudden collapse of a major financial institution or a sovereign debt crisis, leading to a global liquidity crisis and severe market volatility ranks third (30%).

Interconnectivity and interdependency of both physical and digital supply chains are potentially increasing vulnerability at a time of geopolitical uncertainty, rapid advances in technology, and climate change. Businesses and global supply chains are also more vulnerable to Black Swan events due to growing concentrations of economic activity reliant on a limited number of critical suppliers and products in areas like AI and digital services, semiconductors, rare earth processors and transition technologies.

Company size influences risk perception
Global supply chain paralysis due to a geopolitical conflict halting the movement of goods and raw materials ranks top for both large (>US$500mn annual revenue, 55% of responses) and mid-sized companies (US$100mn+ to US$500mn, 52%). In contrast, smaller companies (<USS$100mn) are most concerned about the impact of a global internet outage (45%), which is the #2 scenario for larger and mid-sized businesses. The third most plausible Black Swan for mid-sized and smaller companies is the sudden collapse of a major financial institution, while larger companies are more concerned about the risk of simultaneous climate disaster and energy grid failure, such as a heatwave triggering wildfires and widespread blackouts. Multinational enterprises have the advantages of bigger budgets and more diversified portfolios and therefore feel they are better prepared to mitigate the risks of an event such as a major internet outage than their smaller and medium-sized counterparts.

“Awareness of Black Swans and the need to build resilience has increased in recent years, but businesses can never fully prepare for rare high impact events such as a global outage or an unforeseen climate-related catastrophe. Building organizational agility, fostering a risk-aware culture and developing scalable response plans for a range of scenarios remain the most practical steps to best prepare for Black Swan events. Insurers can play a critical role in helping businesses strengthen their resilience in areas such as cyber risk and support more informed decisions when assessing and selecting critical suppliers,” says Michael Bruch, Global Head of Risk Consulting Advisory Services, Allianz Commercial.

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Gavin Teichner

TAL has updated its flagship retail product, Accelerated Protection, including the launch of the TPD Support Option, a new approach in the Australian life insurance market. The insurer has also strengthened Income Protection for self-employed customers, delivering added support during a claim.  

Gavin Teichner, TAL Chief Executive – Individual Life, said the changes reflected TAL’s commitment to evolving product design in line with changing customer needs, clinical insights and financial adviser feedback.

“Our focus is on ensuring TAL’s products reflect how Australians live and work today and deliver genuine value. We’ve taken an evidence-based approach with these changes to Accelerated Protection to ensure meaningful support for those who need it, while maintaining value for all our customers.”

Introducing TAL’s TPD Support Option, designed around real customer health journeys

TAL recognises that every customer’s recovery is unique. Developed through extensive research and consultation with customers, advisers, GPs and specialist clinicians, the TPD Support Option has been designed specifically for certain mental health, chronic fatigue and functional conditions where recovery outcomes can vary significantly.

Customers who choose this option receive 20% of their sum insured each year for claims involving these conditions, provided they continue to meet the TPD criteria at annual review. This flexible structure provides ongoing financial support during recovery, with the certainty that if they’re unable to return to work, they’ll receive their full sum insured over time. Claims for all other health conditions are paid as a full lump sum.

During their claim, customers can also access tailored health programs through TAL Health for Life to support their recovery.

“The TPD Support Option recognises that recovery is rarely straightforward. Some people can return to work with the right support and treatment, while others, unfortunately, cannot. Its flexible approach helps people through their recovery journey while maintaining strong financial protection for those permanently unable to work,” said Mr Teichner.

Supporting self-employed customers when an illness or injury affects their work

Recognising that self-employed Australians face unique challenges when they can’t work, TAL has introduced two improvements to Income Protection to better support business continuity during illness or injury. Key updates include redesigned offsets for ongoing income, and updated waiting period rules that allow customers to undertake limited administrative tasks during the waiting period without affecting their eligibility.

These changes reflect the realities of business ownership, giving self-employed customers greater confidence that their cover will support them through recovery and help to keep their business running.

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Despite the challenges, this remains a profession defined by purpose, resilience and an enduring commitment to clients

The irony isn’t lost on anyone. The people who help Australians prepare for life’s worst shocks are themselves battling to survive.

Between rising levies, endless paperwork, and fewer peers to share the load, many risk advisers are wondering if the profession they’ve built their lives around still has a future.

And that matters – because when life throws its worst at people, through illness, injury, or loss of income, good advice can be the difference between resilience and ruin. The FAAA Value of Advice Index 2025^[1] proves it: 96% of advised Australians felt more confident through turbulent times thanks to their adviser.

That’s why, despite the pressure, there still lies a chance to rebuild – to design a system that rewards integrity, supports sustainability and still protects the clients who rely on advice when life goes sideways. Because, without a strong, sustainable risk-advice profession, that consumer safety net frays. The challenge, and opportunity, is to rebalance the system, so advisers can run viable businesses and keep doing what they do best – ensuring Australians are supported when life doesn’t go to plan.

Getting the balance right on regulation

Reform has done a lot to rebuild trust in financial advice – and rightly so. But for many risk advisers, the economic fallout of that progress hasn’t been shared evenly.

Smaller, risk-focused practices often face the same levies as large, diversified firms. A one-size-fits-all approach sounds simple on paper but drives up costs, squeezes margins, and makes advice less accessible for clients who need it most, while forcing already-stretched businesses to absorb the impact.

The two key levies – ASIC and the Compensation Scheme of Last Resort (CSLR) – illustrate the challenge. The ASIC levy has more than doubled^[2] from around $900 to $2,300 per adviser. The new CSLR levy has grown from $20 million in its first year to $67 million this year^[3], with further increases projected as investment-related claims rise. These costs are shared across all advisers, even though most compensation claims stem from investment products rather than life-insurance advice.

The intent behind both levies is sound: maintain consumer confidence and protect clients from misconduct. The opportunity now is to make them more proportionate. Tailored levies and streamlined compliance could support a fairer model, recognising the lower risk profile of pure risk advisers. That kind of fine-tuning would help preserve diversity in advice businesses without diluting consumer safeguards.

And for advisers, contributing to discussions about how levies could be better calibrated for their specialisations, is an opportunity to help shape reform in a way that directly impacts their businesses.

Revitalising the talent pipeline

While regulation remains one of the biggest hurdles for the advice profession, an equally urgent challenge is attracting and retaining the next generation of advisers. Adviser numbers have fallen from 26,000 to about 15,000 nationwide,^[4] with few new entrants choosing risk advice as a career.

Education reform has boosted professional credibility but created practical barriers. The professional-year model is costly for small firms, which invest in training only to see new advisers leave for higher-paying roles. Meanwhile, degree requirements have prompted many experienced and strategically skilled risk advisers – often in their 50s and 60s – to exit the industry.

That exodus has taken more than numbers with it. It’s stripped the profession of lived experience – the mentors who once guided new entrants through the real human side of advice. Risk advice isn’t just about products or premiums; it’s about empathy and judgement – understanding family needs and knowing when to have the right conversations. It’s a profession that requires the kind of wisdom that comes only from sitting across the table from clients in tough moments, not in lecture halls.

To rebuild the pipeline, we need education pathways that reflect industry realities – practical, risk-specific training supported by structured mentoring. A dedicated diploma-level qualification, with hands-on learning, would attract new talent and give experienced advisers a meaningful way to pass on their craft. The Government’s Delivering Better Financial Outcomes (DBFO) legislation provides a clear opportunity to act. If the Government can create a new class of adviser under the DBFO reforms, it should equally recognise risk insurance specialists as a distinct and essential professional category.

Supporting commercial sustainability

Sustainability isn’t just about people or policy; it’s about economics.

Rising compliance costs, shrinking commissions, and heavier review obligations have made it harder for many advisers to run profitable businesses. Annual reviews, often triggered by premium adjustments and regulatory expectations, now consume as much time as writing new business.

These trends underline the need to rebalance the economics of quality advice.

Reviewing commission structures, streamlining clawback rules, and leveraging smarter technology could free advisers to focus on clients. Insurers and licensees can help by sharing data, improving claims efficiency and collaborating on practical solutions that make advice delivery smoother and more sustainable.

For advisers, focusing on operational efficiency – adopting digital systems, automating review workflows, and collaborating more closely with product partners – offers tangible ways to strengthen profitability without compromising service.

An industry-led initiative to reframe risk advice

After years of headlines focused on misconduct, reform and red tape, it’s time for the conversation about advice to change. For too long, media coverage has focused on the failures of a few rather than the value delivered by the many. The industry has spent a decade rebuilding trust – but restoring perception requires just as much attention.

As an industry, we’ve never collectively told our story. In 2024 alone, life insurers paid out more than $2.2 billion^[5] in mental-health claims, with total and permanent disability (TPD) claims accounting for nearly one-third of all payouts – yet few Australians know it.

And that’s just one category.

Across all types of life insurance, billions more are paid out each year to help families stay in their homes, keep small businesses afloat and prevent financial hardship when tragedy strikes. Without that support, the burden would inevitably fall on government safety nets – a point often lost in public debate about regulation and reform.

Life insurance remains misunderstood, too often seen as discretionary rather than essential. Other sectors have successfully reshaped public sentiment through coordinated messaging – the pork industry’s “Put some pork on your fork” campaign turned a discretionary product into an everyday staple. The same thinking could transform how Australians view risk advice.

A national, industry-led advertising campaign – uniting advisers, licensees, insurers and associations – could reframe life insurance as a core part of every household’s financial safety net. It would balance years of negative coverage with a message of purpose and impact, showing that professional advice isn’t a sales function but a safeguard that keeps families financially secure when life goes wrong.

A profession worth recognising

Despite the challenges, this remains a profession defined by purpose, resilience and an enduring commitment to clients – one that deserves recognition. Celebrating those who serve under pressure, through initiatives such as industry awards and adviser storytelling, helps keep the profession visible, inspire confidence, and attract new talent.

But recognition must go hand in hand with reframing. The same campaign that rebuilds public trust can also restore professional pride – showing advisers that their work is not just regulated, but respected; not just necessary but valued.

For advisers, the opportunity is to shape a profession that protects Australians and sustains meaningful careers. With fairer levies, practical education pathways and smarter compliance, advisers can focus less on red tape and more on what truly counts – helping people through life’s hardest moments.

Together, regulators, insurers, licensees and advisers can build a profession that stands as a cornerstone of national financial resilience.

By Sue Laing, Technical Director at The Risk Store Consulting and Steve Murray, Managing Director at Catalyst Compliance

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Notes:
[1] https://faaa.au/value-of-advice-research/
[2] https://www.asic.gov.au/about-asic/news-centre/news-items/asic-releases-estimated-industry-funding-levies-for-2024-25/
[3] https://cslr.org.au/cslr-releases-fy2026-revised-levy-estimate/
[4] https://www.asic.gov.au/about-asic/news-centre/news-items/asic-urges-immediate-action-from-financial-advisers-as-deadline-approaches/?utm_source
[5] https://cali.org.au/mental-ill-health-is-straining-australias-safety-net/

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