Farm Insurance :: News
SHARE

Share this news item!

Individual Disability Income Insurance Extends Profitable Streak into Fifth Quarter

Individual Disability Income Insurance Extends Profitable Streak into Fifth Quarter

Individual Disability Income Insurance Extends Profitable Streak into Fifth Quarter?w=400
Recent figures from the Australian Prudential Regulation Authority reveal that individual disability income insurance (DII) recorded an underwriting profit of $231 million for the first quarter of 2025, continuing a five-quarter streak of profitability.
This performance shows promising growth compared to the December 2023 quarter, which saw an $86 million loss.
Although the latest profit is up from $138 million in the last quarter, it still falls short of the $419 million achieved a year before.

The continued profitability of individual DII comes in the wake of past concerns raised by APRA regarding the design and pricing of these products. In response, APRA had introduced additional capital requirements and other measures to safeguard the sector's stability.

Other segments within the insurance industry also recorded profits in the March quarter. Group disability income insurance reported a profit of $22 million, group lump sum logged $9 million, and individual lump sum accounted for $117 million. Collectively, the industry posted an underwriting profit of $425 million, a sharp increase from the $10 million profit documented in the previous quarter, although down from the $579 million a year ago. Overall, the net profit after tax stood at $332 million, a significant recovery from the $15 million loss in the preceding quarter. However, this result is a decrease from the $628 million profit recorded a year earlier.

This profitable trend in the DII market and broader insurance industry highlights the impact of regulatory actions in stabilising the sector and enhancing its financial health.

Looking ahead, the consistent profitability of DII signifies a stable market environment, yet challenges remain to maintain these gains amid fluctuating economic conditions. Industry experts suggest that continued vigilance and adaptive strategies will be essential to sustain growth and profitability. The insurance sector will need to balance regulatory compliance with competitive pricing to keep attracting consumers while managing risks effectively.

Published:Tuesday, 10th Jun 2025
Source: Paige Estritori

Share this news item:

Insurance News

AFCA Upholds Insurance Fraud Ruling Over Disputed Possum Accident AFCA Upholds Insurance Fraud Ruling Over Disputed Possum Accident
26 Jun 2025: Paige Estritori

A motorist's claim that he crashed into a tree to avoid a possum has been denied by the Australian Financial Complaints Authority (AFCA), which supported the insurer's fraud decision. The incident involved the driver crashing his Jeep—insured for over $20,000—on a dimly-lit street, purportedly avoiding the rain-soaked motorway en route to the store. - read more
Code Watchdog Criticises Insurer for Misleading Rejection Letters Code Watchdog Criticises Insurer for Misleading Rejection Letters
24 Jun 2025: Paige Estritori

The Life Code Compliance Committee has recently reprimanded a life insurance provider for issuing misleading rejection letters to policy applicants. These letters were deemed 'ambiguous and contradictory' and failed to clearly inform applicants of their review options after being denied coverage. - read more
Insurer Ordered to Pay Full Claim for Confusing Patio Coverage Insurer Ordered to Pay Full Claim for Confusing Patio Coverage
23 Jun 2025: Paige Estritori

A recent ruling mandates that an insurer must fully honor a storm-related claim due to ambiguous policy wording regarding items in open areas. The Australian Financial Complaints Authority (AFCA) determined that the insurer's restriction on coverage for items in a patio area was unfounded, as the policy's phrasing was not clear. - read more
Australia Sees Dramatic Drop in Catastrophe Losses Australia Sees Dramatic Drop in Catastrophe Losses
23 Jun 2025: Paige Estritori

Last year saw Australia's insured catastrophe losses plummet to just $500 million, marking the lowest level since 2004, according to Aon's latest Climate and Catastrophe Insight report. Notably, the Insurance Council of Australia reported no disasters for the year, a situation not seen since 1982. This comes in stark contrast to 2023, when disaster-related insured losses soared to over $3.6 billion. - read more
Half a Million Australian Homes at Risk of Becoming Uninsurable, Climate Agency Reports Half a Million Australian Homes at Risk of Becoming Uninsurable, Climate Agency Reports
21 Jun 2025: Paige Estritori

The Climate Change Authority has released a concerning report highlighting that, without immediate intervention, extreme natural hazards could cost Australians approximately $8.7 billion annually by 2050. The report urges the federal government to spearhead a comprehensive and well-coordinated national adaptation agenda to mitigate these risks. - read more
Red Sea Unrest: Insurer Denies Cruise Cancellation Claim Red Sea Unrest: Insurer Denies Cruise Cancellation Claim
20 Jun 2025: Paige Estritori

An Australian travel policyholder has been denied a claim payout after his planned cruise in the Red Sea was cancelled due to conflict. The insurer, Southern Cross, invoked its policy's war and violence exclusion clause, as disturbances in the region were linked to military activities, rendering the claim invalid. - read more



Farm Insurance Articles

The Impact of Weather on Farm Insurance Rates: What You Should Know The Impact of Weather on Farm Insurance Rates: What You Should Know
Farming in Australia is a dynamic venture that requires careful planning and management. One of the crucial aspects every Australian farmer should consider is farm insurance. It provides a safety net against potential financial losses arising from various risks. These include natural disasters, damage to crops, livestock issues, and accidents on the farm property. - read more
Investing in Cybersecurity: A Crucial Step for Sustainable Farming Investing in Cybersecurity: A Crucial Step for Sustainable Farming
Cybersecurity refers to the practice of protecting systems, networks, and programs from digital attacks. In the context of agriculture, it involves safeguarding the digital solutions and technologies that have become intrinsic to modern farming operations. As technological advancements continue to revolutionize the farming landscape, the importance of cybersecurity in securing farm data and operations has become more pronounced. - read more
Essential Coverage vs. Optional Add-ons: Balancing Protection and Costs Essential Coverage vs. Optional Add-ons: Balancing Protection and Costs
For Australian farmers, having the right insurance coverage isn't just a safety net—it's an integral part of sustaining their livelihood. Natural disasters, unpredictable climate conditions, and the inherent risks of agricultural production underline the critical importance of robust insurance for the agricultural community. As farmers navigate the complexities of insurance, understanding the basics becomes the first step toward securing their assets and ensuring the continuity of their operations. - read more
How to Choose the Right Farm Insurance Policy for Your Needs How to Choose the Right Farm Insurance Policy for Your Needs
Farm insurance is a type of coverage designed specifically for the unique risks and operations involved in farming. It encompasses protection for farm dwellings, equipment, livestock, and crops, offering a tailored approach that reflects the diverse needs of farm owners. This coverage can help safeguard your livelihood against unforeseen events that could disrupt farm operations or result in significant financial losses. - read more
Is Your Farm Under-Insured? Tips for Assessing Bushfire Insurance Adequacy Is Your Farm Under-Insured? Tips for Assessing Bushfire Insurance Adequacy
The threat of bushfires looms large over the vast expanses of rural Australia, shaping the reality of farming in this sunbaked landscape. The risk, always present, escalates as the climate warms and dry conditions persist. It's not a matter of if, but when the land will be tested by fire's wrath. In this environment, the armor of insurance isn't just recommended; it's critical for survival. - read more
Common Myths About Farm Insurance Debunked Common Myths About Farm Insurance Debunked
Whether you're a seasoned farmer or just starting out, understanding farm insurance is crucial. It's more than just a safety net; it's a way to ensure that your farming business can withstand unforeseen challenges. By safeguarding your livelihood, farm insurance offers peace of mind amidst uncertainties. - read more
Agribusiness Risk: Liability Issues Facing Australian Farmers Today Agribusiness Risk: Liability Issues Facing Australian Farmers Today
The agricultural sector in Australia carves a significant portion of the country's economy, contributing to its GDP and providing employment across rural and suburban areas. Thus, navigating the complexities of agribusiness is not just a matter of crop cultivation and livestock management, but also of understanding the intricate web of liability risks that come with the terrain. - read more
Essential Coverage vs. Optional Add-ons: Balancing Protection and Costs Essential Coverage vs. Optional Add-ons: Balancing Protection and Costs
For Australian farmers, having the right insurance coverage isn't just a safety net—it's an integral part of sustaining their livelihood. Natural disasters, unpredictable climate conditions, and the inherent risks of agricultural production underline the critical importance of robust insurance for the agricultural community. As farmers navigate the complexities of insurance, understanding the basics becomes the first step toward securing their assets and ensuring the continuity of their operations. - read more
Is Your Farm Under-Insured? Tips for Assessing Bushfire Insurance Adequacy Is Your Farm Under-Insured? Tips for Assessing Bushfire Insurance Adequacy
The threat of bushfires looms large over the vast expanses of rural Australia, shaping the reality of farming in this sunbaked landscape. The risk, always present, escalates as the climate warms and dry conditions persist. It's not a matter of if, but when the land will be tested by fire's wrath. In this environment, the armor of insurance isn't just recommended; it's critical for survival. - read more
The Ultimate Guide to Affordable Farm Insurance for Australian Farmers The Ultimate Guide to Affordable Farm Insurance for Australian Farmers
Welcome to 'The Ultimate Guide to Affordable Farm Insurance for Australian Farmers.' As stewards of the vast Australian countryside, farmers face an array of unique challenges and risks. Every day, they grapple with the forces of nature, the volatility of the markets, and the complexities of modern agricultural operations. - read more
What You Need to Know About Crop Insurance for Your Farm What You Need to Know About Crop Insurance for Your Farm
Farming is a risky business. As a farmer, you are at the mercy of the weather, pests, and other challenges that can threaten your crops and your livelihood. That’s where crop insurance comes in. Crop insurance can provide financial protection in case your crops are damaged or destroyed, allowing you to recover from losses and move forward with your farm business. - read more
The Impact of Weather on Farm Insurance Rates: What You Should Know The Impact of Weather on Farm Insurance Rates: What You Should Know
Farming in Australia is a dynamic venture that requires careful planning and management. One of the crucial aspects every Australian farmer should consider is farm insurance. It provides a safety net against potential financial losses arising from various risks. These include natural disasters, damage to crops, livestock issues, and accidents on the farm property. - read more

Need a Quote?
Start your free farm insurance quote comparison here.
Farm Type:
Postcode:

Knowledgebase
Insurance Underwriter:
An insurance company, a financial institution that sells insurance.