Tue, 20th Feb 2024

In this episode, Paige Estritori from Financial Services Online discusses the current state of Australia's financial services industry. Insurance company, IAG, despite a 13% drop in net profits, sees its insurance profit soar by over 75% due to effective cost efficiency measures. However, rising reinsurance costs and inflationary pressures provoke concerns about insurance affordability, especially in the property sector. Meanwhile, the APRA mandates that super funds like AustralianSuper reserve 0.25% of their assets against operational risks. In the superannuation sector, amidst concerns about potential losses due to the COVID-19 Early Super Release Scheme, there is a push for the Superannuation Objective Bill 20230, aimed at preventing early access to retirement savings. Contrastingly, self-managed super funds seem to be weathering the economic crisis well. The episode highlights the industry's ongoing challenges and opportunities while trying to protect super savings and manage rising insurance costs.n