Life insurer AIA Australia today announced a number of improvements to its market leading Priority Protection product.
Changes include a new initial 7.5% discount for all Income Protection and Business Expenses policies when AIA Vitality is attached. From 17 December 2016, all new eligible policies will have the discount automatically applied. Importantly all eligible inforce policies will also have the discount applied at the next premium due date or policy anniversary on or after 20 January 2017. A similar discount exists for lump sum policies with AIA Vitality, which was increased from 7.5% to 12.5% in November 2015.
As part of the upgrade, AIA Australia has also reviewed and updated some of its medical definitions. The updated medical definitions which include conditions such as Stroke and Severe Rheumatoid Arthritis, along with the introduction of a new partial benefit for Rheumatoid Arthritis will be passed back to eligible existing policies effective 17 December 2016.
In addition, the Income Protection Super Extras policy now allows premiums to be split 95%/5% (previously 85%/15%) across superannuation and non-superannuation respectively. This means clients can fund more of their premiums from their nominated superannuation account. AIA has also introduced a new occupation category, intended to have the effect that premium changes can be targeted and better aligned to AIA’s claims experience.
Last but not least AIA Australia is implementing a two year rate guarantee for all new business and Priority Protection products, and will apply this approach retrospectively for a range of product series. This premium rate freeze will provide stability for clients in the first few years of their policy.
AIA Australia Chief Retail Insurance Officer Pina Sciarrone noted that clients have embraced the AIA Vitality program since its launch in 2014: ”We are seeing improved lapse rates: By giving clients the chance to engage with their insurance on a daily basis through the AIA Vitality program, they are over 50% less likely to lapse on their life insurance policies,” Ms Sciarrone said.
The new Priority Protection enhancements are part of AIA Australia’s regular review process to ensure their product range reflects the changing needs of Australian life insurance customers and their advisers. Premium rates for these products will increase by 10%.
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Contact: Ingrid Nienaber
+613 9009 4143
About AIA Australia
AIA Australia Limited is an independent life insurance specialist with over 40 years of experience building real and sustainable partnerships. AIA Australia offers a range of products that protect and enhance the lives of nearly three million Australians and is widely recognised as a market leader in product innovation and development.
AIA Australia is the country’s largest group life insurer by market share and works closely with major financial institutions and corporate partners to provide life insurance solutions for their customers. In addition, AIA Australia is the fastest growing provider of retail life insurance products sold through financial advisers. AIA Australia also works with a network of affinity partners that distribute life insurance products. By having a partnership philosophy at the core of its business, AIA Australia is focused on building genuine relationships and delivering real value to its business partners.
In March 2014, AIA Australia introduced ‘Vitality’ – the world’s leading scientifically-backed health and wellness program, to the Australian market. AIA Vitality aims to be the catalyst for real change to the positive health outcomes of Australians.