Zurich Financial Services Australia has joined MLC by changing their total and permanent disability (TPD) premiums in the lead up to the Life Insurance Framework (LIF) transition in July next year.
Zurich said its changes were to increase simplicity, affordability, sustainability, and to deliver genuine benefits to advisers and customers.
Zurich’s general manager for life and investments, Philip Kewin said “while this is only the first step, it’s a very important one, as we are determined to see an industry response to LIF that goes beyond adviser remuneration and delivers genuine benefits to advisers and customers”.
“The retail income protection market has faced many challenges in recent years, with rapidly deteriorating claims experience being reflected in a seemingly constant cycle of rate increases,” he said.
The insurer’s changes include simpler pricing structures, a reduction in term and TPD new business premium rates, and the launch of new income protection products.
Kewin said its wealth protection policies would benefit from at least two years of rate certainty.
“We are effectively keeping the underlying base rates unchanged for the first two years of the policy, to give advisers and customers added confidence and certainty about the cost of cover,” Kewin said.
