MLC has launched its annual product upgrade, with the company’s latest PDS for its Personal Protection Portfolio (PPP) and Life Cover Super products coming into effect from 1 October 2009.
This year’s product update sees modifications to the current product series, rather than any wholesale changes, but there have been a number of premium-related initiatives.
Key changes include:
Product Enhancements
- Introduction of level premium option for TPD Stand Alone and Critical Illness Stand Alone products
- Interim Accident cover will now commence on submission of a paper or online application (with or without the signed declaration). MLC intends this improvement to increase the attractiveness of applying for insurance using the online option.
Premium Changes
A number of premium adjustments have been made, both up and down, reflecting claims experience across different products and also the need to maintain competitive rates in key target markets:
- 64% of policies will experience no premium change, while there will be an average increase of 1.5% across all other policies. The focus for MLC remains on competitive level premiums, encouraging long-term client relationships.
- Life Cover level premiums to be reduced by up to 6.0% (3.5% on average)
- Critical Illness level premiums restructured to assist advisers target a younger market segment. Ages 35-40 will see rate reductions of up to 8.0%.
- Income Protection and Business Expenses stepped premium rates to increase by an average of approx. 5.0%, with an average 4.5% increase on level premium contracts
- Reduced minimum premium requirements for Connected Benefits. Minimum premium requirement has been halved on the policy with the connected TPD and Critical Illness extension insurances.
- Reduced minimum premiums for increases. Minimum premium requirement has been halved on any increases to existing cover, assisting in reducing the barrier to increasing existing insurance.
In addition to the above, MLC advises its new hard copy PDS has been printed on 100% environmentally friendly paper sourced from well managed, environmentally sustainable plantation forests. This is part of MLC’s campaign to reduce its carbon footprint and reduce global warming.
Other PDS enhancements include:
- Simplified introductory content
- Improved readability
- More client friendly language
- Enhanced application form - MLC has separated the application form from the PDS as a result of adviser feedback
MLC’s Head of Product - Insurance, Sean McCormack, said, “At MLC we are focused on sustainable insurance which has greatly benefited our customers.”
We continue to fine tune our offer in areas that advisers and their clients have told us are important to them…
“We continue to fine tune our offer in areas that advisers and their clients have told us are important to them and will further enhance that sustainability,” said Mr McCormack.
The company reports that all changes are effective from 1 October 2009 and will be passed to all current PPP policy holders, in line with its Guarantee of Upgrade philosophy.
A series of national adviser roadshows across October will detail these changes/enhancements and a new version of the MLC Adviser SwitchBoard quotation software has also been released.
