Macquarie is increasing its standard premium rates for disability income insurance for all new business.
According to a statement issued via the company’s website, Macquarie said premium rates for disability income will go up from 17 October for all new business and will go up for existing policies from 1 December.
Macquarie said base premiums for the company’s FutureWise Disability Income and Active Income Cover products are increasing from seven per cent to 10 per cent for new and existing business across stepped premiums.
For all new business written on level premiums, Macquarie said there will be an increase from six per cent to 12 per cent, and for existing business there will be an increase of five per cent.
All existing policies written with the company’s Super Protector Income Protection product will have an increase of 2.5 per cent.
“In 2014, the Australian industry paid out over $1.4 billion to help over 42,000 disability income claimants,” the statement from Macquarie said.
“Claim rates continue to climb, for example between 2009 and 2013 there was a 47 per cent increase in the incidence rate of accident claims.”
“Our aim is to provide clients with the confidence that we will meet claims expectations and, with a higher number of claims in mind, we are ensuring we continue to be appropriately priced for current and future claims,” it said.