MLC breaks new ground in insurance
In what is believed to be an industry first, MLC has made a guarantee to new and existing customers that its level premium rates for life and total and permanent disablement extension insurances will not increase during the next five years.
With economic uncertainty forcing people to reassess their insurance needs, MLC’s decision to lock its level premium rates comes at an opportune time.
"The market volatility we are experiencing has rightfully heightened interest in insurance and now, more than ever, is the time for advisers to be helping clients meet their protection needs," MLC general manager of insurance Greg Einfeld said.
"One of the biggest concerns for clients considering level premiums is that the rate is not guaranteed; with these changes, clients can be assured of no rate increases for the next five years."
Coinciding with the announcement is the launch of a new-look Product Disclosure Statement (PDS) for MLC’s main individual insurance offerings, Life Cover Super (LCS) and Personal Protection Portfolio (PPP).
Research conducted by the company revealed that clients would prefer a PDS to be easy to read over a reduction to the page count.
As such, MLC has incorporated summary tables detailing the features and benefits of the product with its new question and answer style format that uses simplified language, while still reducing the length of the document.
Recommended for you
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
