Insurer ClearView will cease the sale of agreed value contracts for Income Protection (IP) insurance from 31 March.
The insurer confirmed to the Australian Securities Exchange (ASX) today that in the second half it would launch a new indemnity type IP product to offer a lower maximum monthly benefit at a competitive premium rate and stated that it was “highly likely that further price changes will be made in coming months to reflect increased claims rates”.
It said that a repricing of the product and a detailed review of the claims assumptions was also underway and any further increases to claims assumptions were intended to be recovered through premium rate increases.
