Zurich has announced a series of rates changes for its lump sum products, to take effect from this week.
The insurer advises it has improved discount factors for death and TPD cover over $1 million and also for trauma insurance sums insured over $250,000.
While stepped rates for death and TPD cover remain unchanged, Zurich advises it has effected a minor increase to base rates for its level premium death and TPD options. Zurich points out that, when balanced with its improved discount factors, the overall effect for death and TPD level sums insured over $1 million will be neutral, and sums insured over $2 million will enjoy a net 3% discount.
Commenting on these changes to death and TPD premiums and discounts, Zurich Head of Sales – Life Risk, Phil Kewin, said the review was prompted by a reassessment of Zurich’s market position and ‘massive growth’ in death and TPD sales, which are currently tracking at double the sales at the same time last year, including an increasing trend towards larger sums insured.
Zurich will also be increasing base rates for its trauma insurance products, both stepped and level, following an increase in the level of trauma claims experienced by the insurer. It is understood the increase in trauma claims has been seen particularly in breast cancer claims for females and in heart disease-related claims for males.
Zurich advises the extent of the trauma rates increase will vary across age and gender, with some of the impact being offset by the improved policy discounts for trauma sums insured greater than $250,000.
“The moment of truth for our industry is at claims time…
“The moment of truth for our industry is at claims time and these changes will enable us to continue offering great value to customers without compromising our ability to pay claims,” said Mr Kewin.
