March 6, 2019
ClearView has implemented premium changes for both new and existing clients for its flagship LifeSolutions product offer.
Changes for new clients became effective from the beginning of March, while changes impacting existing policy holders will mostly come into effect from 22 April 2019.
For new policy holders, ClearView advised premiums have been revised across all cover types and will take effect from 1 March 2019.
For stepped and hybrid premiums for new business, ClearView informed advisers that:
- In general it would be reducing life and TPD premiums
- It will be increasing trauma, IP and business expenses cover rates
In noting new level premium rates would also increase, ClearView’s well-known GM Distribution, Christopher Blaxland-Walker, noted “…level premium rates are sensitive to investment market interest rates (we have to invest some of the initial year level premium to pay for the longer term claims costs). With the sustained low interest rate environment, coupled with higher Income Protection and Trauma claims costs, unfortunately overall these rates have to increase.”
ClearView advises premiums for existing LifeSolution policies will take effect from 22 April 2019, but policy holders on stepped and hybrid premium plans will retain a two-year fixed period.
For existing level premium clients, however, there will be a delay to any increases; Blaxland-Walker noting:
“We understand the impact on managing your business when increases are applied to existing level premium clients, therefore we have made a decision to defer increases to existing customers that hold a level premium policy until 22 April 2020.
The insurer said its new pricing reflects:
- The realities of underlying claims experience across the industry
- The economic environment
- An aim for ClearView to be more consistent in its competitive position across the range of benefits it offers