Zurich cuts insurance red tape
In an effort to reduce turnaround times for financial advisers and make life risk insurance more accessible for Australians, less than one in 10 life risk insurance applications lodged with ZurichFinancial Services Australia will now need to provide financial and medical details.
As part of a review of its applications, Zurich has overhauled nearly all medical tests, age bands and sums insured, and the company has made improvements to more than 80 per cent of the medical limit bands.
Zurich head of life risk Andrew McKee said the overall benefit of the changes is that the process is now simpler for both advisers and clients.
“Effectively, we’ve made it easier [to obtain life risk insurance] as we’ve increased the limits,” he said.
To make the process easier still, the insurer has introduced an express medical examination, which it expects will dramatically reduce delays experienced with the new business process.
The express medical examination eliminates the need for further tests.
“Someone medically qualified will be sent out to see a client and measure their height, weight, blood pressure and take a urine sample,” he said.
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.
