At AIA Australia we are proud to be market leaders within the life insurance industry. What’s important to us is to protect our clients’ financial security and support them when they need us most. A key part of this commitment is to maintain a strong insurance industry that delivers products that are sustainable in the insurance industry for both the insurer and its customers.
As of 1 October 2021, APRA are mandating new requirements relating to income protection which will become industry standard. We are taking a leadership approach by being one of the first insurers to launch a new product, called Income Protection (IP) CORE, based on these principles.
We have carefully designed this product to align with APRA and the Actuaries Institutes’ objective to deliver more stable premiums in the Income Protection market. Because of this, your clients will now have greater ability to tailor their income protection based on their personal needs and budget.
In the interim, we are offering both our existing IP policy and IP CORE in parallel to ensure that you have options for your clients and to help with an easier transition in 2021. This will allow us to get your real-time feedback on the structure of the new product and allow us to co-create this new type of robust cover.
These APRA requirements saw the end of Agreed Value benefits being recommended to new clients from 31 March 2020; and significant changes to the current Income Protection products in market have been mandated before by 1 July 2021 (phase two), with a final position issued in relation to Income Protection on 30 September 2020 which extended phase 2 to 1 October 2021.
To discuss our new IP CORE cover and provide feedback, please contact your AIA Client Development Manager or Associate. Alternatively, you can read the ‘Further reading’ section below for more detail.