Holders of life insurance policies can expect premium rises from next year, because of changes to the way policies are taxed.

The mammoth Taxation (International Taxation, Life Insurance, and Remedial Matters) Bill was reported back to Parliament yesterday.

The bill produces big changes to a number of areas of tax law, one of which is updating how life insurance policies are taxed at the company level.

If you have health insurance, you could see your premiums rise sharply in the next couple of years, particularly if you are over 65.

The Health Funds Association (HFANZ) annual report shows the extent to which health insurers’ margins are being squeezed by the rapidly escalating cost of healthcare and the demands of an ageing population.

In the year to March 31, 2009 total premium income increased 5.9% to $838 million; however, total claims paid by health insurers climbed by 12.9% to a record $712 million.