Australia’s life insurance industry doubled its profits to $1.2 billion in FY23, according to KPMG’s annual market review.

The cost of premiums for advised disability income life policies rose by 10-12 per cent, consistent with recent years, as insurers tried to stem losses and boost profitability.

Industry premium income rose 4.1 per cent to $17.9 billion, according to the review. Much of this was due to inflation and price increases across the market.

The lapse rates for policies arranged through Independent Financial Advisers rose, but overall the number of lives insured by the market has stabilised after falling for several years

The report also found that, in the past year, the average costs for both individual and group disability insurance, as well as TPD, went up by four per cent and three per cent.

The report observed that the group life market remains highly concentrated with  few providers.