Zurich’s pricing changes are being framed as aggressive, but from an actuarial lens, they’re a response to worsening pool dynamics. Duration-based discounting pulls forward profitability, while lapse-supported pricing assumptions break down when persistency improves among higher-risk cohorts. The result is predictable. Loss ratios expand and repricing follows.
From an advice perspective, this is where tension builds. You’re managing client outcomes in a system where pricing is no longer purely age-based or linear. Zurich’s move around new premium classes, particularly targeting ownership structures and beneficial interest, is a signal that anti-selection is being actively priced for. The question isn’t whether this continues. It’s how far it goes across the market.
👉 Join the My Risk Adviser Facebook community for Australian advisers: https://www.facebook.com/groups/myriskadviser/
The advice shared on My Risk Adviser is general in nature and does not consider your individual circumstances. My Risk Adviser exists purely for educational purposes and should not be relied upon to make a financial decision.
","author_name":"Phil Thompson"}