Melbourne, 7th August 2017 – AIA Australia, one of the largest life insurers in Australia*, has announced changes to new business premium rates for its Priority Protection and Priority Protection for Platform Investors (PPPI) products. The company is introducing an extra Large Sum Insured Discount band and improving its stepped life rates. Further changes include adjusting the Crisis Recovery stepped premiums and level premiums for Life Cover and Crisis Recovery. The new pricing announced apply to new business only, there is no impact to existing policyholders.
Pina Sciarrone, Chief Retail Insurance Officer AIA Australia, said these changes will bring increased benefits to advisers’ clients: “We at AIA Australia are always working closely with advisers and aim to support them in maintaining and growing their business. We know that Life Cover is a key element of most of our Priority Protection policies. That’s why we’re reducing premiums for Life Cover to ensure that advisers can offer more value to their clients.”
With a new 26% Large Sum Insured Discount for clients with higher amounts of Life Cover and Term Cover (between $750,000 and $1,000,000), AIA Australia is providing greater discounts to clients with higher amounts of cover. The company will also decrease Life Cover stepped premiums by an average of 5-6%**.
The Crisis Recovery adjustments for new business stepped premiums include an increase of standalone stepped premiums by an average of 4-5% for policyholders over the age of 35***, and an average of 9% for clients 35 and under. Crisis Recovery Rider new business stepped premiums will increase by an average of 5% for policyholders over the age of 35***.
Sciarrone explained: “Our Life and Crisis bundled policy remains competitive under the new pricing. We have tailored these changes to maintain sustainable options and ensured they are competitive in the market.”
AIA Australia’s Priority Protection products have a range of level premium options which are all based on the ‘True Level’ concept. They use the policyholder’s entry age rather than the age at their next birthday when calculating any Consumer Price Index (CPI) increases. While there is an increase to Level premiums for new business, using True Level, the accumulated premiums over the long term remain competitive. Life Cover and Crisis Recovery new business level premiums increase by an average of 5% for policyholders between the ages of 40 to 50, and 9% increase for policyholders under the age of 40.
For clients who prefer level premiums and whose needs are shorter term, AIA Australia offers Term Level as part of its award winning Priority Protection product. Term Level provides greater flexibility when matching premium structures to clients’ needs by providing the predictability of a True Level premium for selected terms of 5, 10, and 15 years. This enables advisers to help their clients avoid yearly stepped premium increases. The premiums for Term Level Life cover are decreased and they remain cumulatively lower than the reduced stepped Life cover rates during the initial term.
Further information on Term Level and details on flexible life insurance pricing options can be found on the Business Growth Hub.
*Source: Strategic Insight
**Based on non-smoker policyholders between 35 and 65 years of age ANB. There is no change for policyholders under the age of 35 or over 65 ANB.
*** Based on non-smoker policyholders Note – ages are based on age next birthday
Contact: Ingrid Nienaber AIA Australia
T: +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 Group Limited and its subsidiaries (collectively “AIA” or the “Group”) comprise the largest independent publicly listed pan-Asian life insurance group. It has a presence in 18 markets in Asia-Pacific.
AIA Australia is one of the country’s largest life insurers 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 programme, to the Australian market. AIA Vitality aims to be the catalyst for real change to the positive health outcomes of Australians.