ClearView announces premium changes

ClearView has announced new pricing arrangements for its LifeSolutions customers effective from 1 March, claiming the changes reflect the realities of underlying claims experience across the industry and the economic environment.

In an announcement released by ClearView’s general manager of distribution, Christopher Blaxland-Walker the company said that premiums had been revised across all cover types including Life, Income Protection, Total and Permanent Disability (TPD), Trauma and Business Expense Cover.

It said that for stepped and hybrid premiums the changes would, in general, reduce Life and TPD premium rates and increase Trauma, Income Protection and Business Expenses premiums.

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The company’s statement said premium rates for new Level premium business were generally increasing.

“Level premium rates are sensitive to investment market interest rates (we have to invest some of the initial year level premium to pay for the longer term claims costs). With the sustained low interest rate environment, coupled with higher Income Protection and Trauma claims costs, unfortunately overall these rates have to increase,” it said.

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Funny, I was told (but did not believe) all those people out there arguing for no Commissions to Advisers had an argument that premiums would then be reduced. Seems "they" might be wrong - but where are "they" and will they take any responsibility? Premiums up and client now pays out of pocket - what a surprise.

This is just part of the industry wide trend to recover the skyrocketing costs of mental health claims. If mental health is a modern day epidemic, as its lobbyists and the media seem to be promoting, it needs to be removed from the private insurance system and funded by taxes. Perhaps as an extension to the NDIS.

It is unfair and unsustainable for the burden of skyrocketing mental health costs to be borne by a relatively small number of privately insured individuals through their increasing insurance premiums.

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