Zurich Financial Services Australia (Zurich) has launched a comprehensive new technology initiative as part of its April 2009 product and services update drive.
This initiative, named Zurich LifeXpress, is one of three key planks that underpin Zurich’s major product and services upgrade for 2009. They are:
- Technology (Zurich LifeXpress)
- Product improvements
- Premium updates
Zurich LifeXpress
The inevitable march towards an industry-wide electronic insurance application and automatic underwriting process took another step forward this week with the launch of Zurich LifeXpress.
LifeXpress is an ’end to end’ system that comprises a new quotation package that feeds data through to an electronic application (eApp) and automatic underwriting system. The process is accessible by advisers via a link in Zurich’s online portal, Adviser Assist.
Zurich’s version of this new technology takes into account of adviser feedback regarding the positive and negative aspects associated with existing electronic application and auto-underwriting services that have been introduced into the market over the last two years.
Zurich’s Strategic Marketing manager life Risk, Marc Fabris, said “LifeXpress integrates adviser needs and feedback from forums and pilot-testing, and provides streamlined, intuitive end-to-end experience that makes it simpler and easier for advisers to provide help to their clients. We have been pilot testing our new LifeXpress quotation and LifeXpress electronic underwriting systems since February, with fantastic feedback from advisers.”
Product Improvements
Taken from Zurich’s update notes, key product enhancements include:
Lump Sum Products
- Enhanced TPD definition
- A new clause allows a benefit to be paid in the event the client is unable to generate earnings greater than 25% of pre-disability earnings (does not apply to TPD cover under superannuation)
- Improved Double TPD definition
- Life cover now reinstated after 14 day survival (previously required to wait 12 months)
- Premium waiver now waives reinstated death cover premiums until policy expiry
- New Future Insurability trigger events
- New Partial TPD benefit
- Partial TPD benefit payable in the event of loss of use of a hand, foot or sight in one eye
- Improved Trauma definitions
- Enhanced Child Cover options
- Child cover can now be dialed down in blocks of $25,000. Minimum cover is now $25,000
- New ‘Child Carer’ benefit - when the adult life insured id required to stop full time paid work to care for a sick child, Zurich will pay 5% of the insured benefit for three months
Income Protection Products
- More favourable income replacement ratios:
- 75% of first $320,000 pa of salary, plus 50% of the next $240,000 pa of salary
- Improved Involuntary Unemployment provision
- Backdating of the Confined to Bed benefit
- Enhanced Specified Injury benefit
- Enhanced Trauma option
- Now covers Zurich’s full extended list of 38 conditions/events
Premium Updates
Lump Sum Products
- ‘Significant’ premium reductions across Death and TPD products, particularly across key target age ranges, mostly applicable to new business only
- Trauma rates have seen both increases and decreases, mostly within 5% of previous rates
Income Protection Products
- Income protection oroduct rates have been increased by two per cent across the board
Commenting on this update, recently appointed Head of Life Risk at Zurich, Colin Morgan, said Zurich was “…very pleased to deliver the changes and improvements in key areas of product quality, new pricing and technology because it will complement the wealth protection strategies of many advisers and clients.”
