Get ready

to pay higher insurance premiums from 2018 

 The life insurance industry is set for drastic change. 
Prepare yourself and your finances for what’s ahead. 

The life insurance industry is preparing for major changes under sweeping Government reforms slated for the end of 2017. And while the reforms were designed to protect the average Aussie consumer, experts say

the changes could leave consumers

worse off.

Here’s what you need to know about the changes on the horizon – and how you can avoid falling victim to the hidden reform traps.

Reducing the ‘churn’ rate will reduce competition

The proposed changes would have us believe that churning is bad, when in fact it’s a sign of a healthy and evolving economy. Churning – the process of customers switching from one policy to another – encourages competition and puts the onus on the insurer to continually provide a great value service at

the right price, or risk losing clients to their competitors.

By discouraging churn, the government is paving the way for big insurers to keep customers tied to second-rate policies – reducing competition within the market, and leaving insurance advisers hamstrung to help their clients find a better deal.

Higher commissions to be paid from YOUR pocket

With the aim of reducing churn and improving customer longevity, the proposed changes seek to turn the insurance industry on its head through lower upfront commissions and increased ongoing commissions. But where will these increased long-term commissions come from? Where else but from the consumer’s pocket.

In order to cover the gap, advisers are likely to start charging a fee for service. And to compensate for higher ongoing commissions, insurance companies will most likely need to increase their premiums. In fact, five insurers have already raised their prices since the changes were first announced, and many others are expected to follow suit in the months ahead. 

   With the reforms looming, there’s never been a better time to review your insurance   
   in order to protect yourself and your finances.  

Here’s how

Compare and save

From 2018, most advisers will be forced to charge a fee for service to cover rising costs. To ensure this fee isn’t being passed on to you, do your research – compare your policy against other insurers in the market to make sure you’re getting the best deal.


Consider level premiums

Level premiums do not increase with the age of the policyholder, which equates to long-term savings and greater control over your insurance policy.​




Request free expert advice

and get ahead of the changes

Is your insurance policy up to date?

Are you ready for 2018?  Request free advice and see how your policy compares.

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At Clear Choice Financial we believe in empowering clients with everything they need to know in order to make the right decision when purchasing life insurance and mortgage products. If you have any questions reach out and call 1300 599 512.

Clear Choice Financial Pty. Ltd. ABN no. 97 611 535 669 and its advisers operate as authorised representative of NEO Financial Solutions Pty. Ltd. ABN 64 141 607 098 Australian Financial Services LICENSE 385845. Clear Choice Financial are authorised through Neo to advise and deal in Life Insurance products only, including Term life, Total and Permanent Disability, Income Protection and Trauma Insurance.


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Not all providers of insurance on the market are included in our comparisons. The amount of any savings will depend on your circumstances. The financial products compared on this website do not necessarily compare all features that may be relevant to you. Comparisons are made on the basis of price only and different products may have different features and different levels of coverage.


Compare Life Insurance, Income Protection, Total and Permanent Disability and Trauma to find a competitive rate for your situation by providing you prices for all products on our panel. Clear Choice Financial Pty. Ltd. aims to save its customers money, time and effort through its innovative rate comparison website designed specifically to cater the needs of the Australian market. Do an online comparison today or if you would like to call us, we have trained professionals ready to help you with your enquiry.


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