Premium sustainability remains the biggest issue facing the group life insurance sector, AIA Australia says.

The concern was raised by 50% of more than 100 delegates at the insurer’s recent group life summit.

About 40% suggest changes to policy design are a possible solution, while 34% say early intervention in claims is key.

The rising numbers of claims is another issue affecting sustainability of group life, as flagged by 23% of delegates.

AIA Australia CEO Damien Mu says premiums have risen due to increased claims and regulatory pressure.

“While premiums have gone up in an initial tactical response to address some of the claims experience, good progress has also been made initially in the market through improved product definitions, rehabilitation and return-to-work programs.

“In addition, more is being done as we see insurers and funds working together to develop the best offering for their membership needs and balancing the cost inside super.”

Mr Mu says the industry must consider how it handles claims and make more use of rehabilitation programs, training and education for members.