CommInsure has flagged a series of changes including an increase on income protection premiums and the launch of a new underwriting rules engine to replace its current system.
The insurer made the announcements via its website and in a series of notifications to advisers stating that from 6 May 2018, some clients with level premium income protection policies that were inforce before 15 February 2014 will receive an average 20 per cent premium increase.
Advisers who have clients that will be impacted by the change, and the clients, will be notified of the change two months prior to their policy anniversary.
CommInsure stated the change was necessary so that it can continue to pay claims and “…it is incumbent upon us to regularly review the experience of claims against premiums charged for all insurance cover provided”.
“…it is incumbent upon us to regularly review the experience of claims against premiums charged…”
“As a result of numerous factors, including higher than expected claims experience and a sustained low interest rate investment environment, income protection premium rates are being reviewed across the Australian life insurance industry,” the insurer wrote on its website.
Advisers were encouraged by CommInsure to use the change of premium rate as “…an opportunity for clients to review their insurance and consider both affordability and perceived value” and to “…help clients understand what can be changed to manage affordability while also retaining their important insurance cover”.
The insurer also announced to advisers that its existing underwriting rules engine, WriteAway, will be replaced by a new engine named MyApply while its current quoting tool, CALQ, will be replaced by new system, MyQuote from 9 April, 2018.
CommInsure has yet to reveal specific changes under the new tools but stated they were developed in consultation with a team of advisers and would “…introduce a smarter, simpler experience for you and your clients”
“We’re combining the best in global technology with more sophisticated, intuitive application rules to ensure we ask the right questions at the right time to the right people,” CommInsure stated.
“For example, we’ve never found an accountant that works underwater, so when the online engine identifies the occupation of the applicant, we will only ask the relevant questions and not a standard set of questions,” CommInsure added.
Please explain. If Level IP premiums were increased by 20% ( Gulp) and the reason is ” adverse claims experience ” why weren’t stepped premiums increased at the same time. What is the link here ?
Looks like a post sale gouge to me !!!!!!
Also looks like an insurer hiding behind a 2 year clawback. Watch this space for the procession. Remember how less commissions under LIF were supposed to reduce premiums ( or least hold them at their current rate of increase ) and benefit clients.
Exactly!! Only policies before 2014 huh? Level premiums were designed to be level and stepped are to be reactionary year on year and age related. Its cheaper to have a stepped premium with the increase in level premiums…. Post sale price gouge is exactly what it is!! They made the bet, they should stick to it. I have no idea how I will recommend a level premium now, knowing that Comminsure can change the premium to whatever they want three years from now. All this off the back of less comms being paid…… The first of many I suspect, what a rort.
Didn’t take long did it ?? In January I mentioned that premiums will rise as sure as the sun comes up !! And guess what ??
Congratulations to the couple of companies who have stated no increases for two years ! We hope unless “adverse” claims gets in the way
With reduced commissions tighter underwriting then I have seen in 39 years 2 year claw backs etc etc etc Why ?
They have not even given the LIF legislation a chance to work not that it ever was going to anyway it’s full steam ahead as if nothing has changed?
Profit before people and happy shareholders that’s all this is about
Unfortunately there will be very few advisers left by 2124
Sad all that experience and passion squashed by lies and deceit
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