According to a statement from the insurer, it has "...accepted and paid out materially more in claims than our historical claims experience indicated we would".

It says since Partners last reviewed its yearly renewable premium rates the company has found that "...premium rates no longer accurately reflect our claims risk and will need to change accordingly".

"We expect to increase our overall premium rates across all Yearly Renewal Term (YRT) policies by an average of 6-7% from the end of February next year."

However, the company says this won't be a broad-brush approach and after some careful data analysis, it will be targeting "pockets" of clients "...whose claims experience has disproportionately contributed to the overall emerging claims experience and the need for these overall price increases".

"Rather than a one-size-fits-all pricing increase for all client demographics, we have made the decision this year to strategically shape our pricing to match the risk that each demographic group presents for each product type."

Partners Life says it believes cross-subsidisation is inherently unfair and the results of its client demographic analysis have been nothing short of eye-opening.

"For those who are currently in a demographic that is disproportionately claiming, their premium rate increase for that product will be higher (and in some cases substantially higher), while those within demographic groups at the other end of the claims experience spectrum will experience a much more modest rates increase.

"We also appreciate that from an industry competitiveness point of view, our new pricing will change the landscape significantly.

"We will become less competitive for some client demographics in respect to new business."

Partners Life is encouraging advisers to view a presentation on its pricing approach for more detail about the changes.

Premium changes:

- Approximately 20% of YRT policies will increase by less than 10%.

- Approximately 40% of YRT policies will increase by between 10% and 15%.

- Approximately 30% of YRT policies will increase by between 15% and 20%.

- Approximately 10% of YRT policies will increase by over 20%