Product overhaul at Tower
TOWER Australia has completed an overhaul of its risk insurance range, improving existing product features and launching a new life insurance product aimed at part-time workers.
Strategic product manager, retail risk and alliances, Ron Williamson said all changes had been driven by adviser feedback. He said: “This has been the key to change. We ran state focus groups, and talked to about 85 advisers. Thirty-four changes have been made in total.”
The life product for part-timers is only the second of its kind in Australia, following the launch of a similar insurance offering by MLC last year. However, the Tower product is available to those working a minimum of 20 hours per week, while the MLC version is only available for individuals working at least 25 hours.
A buyback feature has also been added to Tower’s crisis product, which enables individuals who have already made a claim to continue their coverage.
Williamson said: “After you claim for a benefit, 12 months later you can buy back the same cover, only you are not covered for the illness for which you made the claim. For instance, if you had a heart attack, that won’t be included when you buy back your cover.
“But you can get cover for 100 per cent of the previous sum insured. Two other providers currently offer a buyback, but only for 75 per cent of the sum insured.”
Additional changes include reduced life insurance premiums, a business insurability option, and the removal of the war exclusion from the total and permanent disability cover.
Tower will also offer advisers an online quotation service. David Callander, chief executive officer, retail life, said: “This includes mandatory fields, resulting in a quicker underwriting process. Cleanskins [applications where there are no outstanding medical issues] can then be cleared in a couple of days.”
He added: “At the back end of 2005, a number of companies launched improvements to their products, so now Tower is catching up to make sure we stay at the head of the pack.
“We also have another 10-12 ideas that we could have launched now, but we intend to roll them out on a gradual basis to sustain growth and keep us ahead of our competitors.”
It has been mooted that Tower will receive official approval for its Prefsure ownership on April 1, 2006.
At this stage, both the Tower and Prefsure brands will continue to be marketed to financial planners.
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