AIA Australia has launched a new direct insurance product, partnering with Bendigo Bank to deliver a tailored life insurance offer to the bank’s customers.
The new product, called Bendigo SmartCover, will be distributed jointly by AIA Australia and Bendigo Bank. AIA Australia said the product had been developed in conjunction with the bank, and tailored specifically to meet the needs of Bendigo’s customers.
Bundling life, income protection and trauma cover together under one product, AIA Australia said Bendigo SmartCover was designed to make the insurance purchase process simple and easy for customers to understand. Bendigo SmartCover will utilise simplified, short-form underwriting and is not a guaranteed issue offer.
While not the first time the insurer has partnered with a bank to deliver a direct product solution, AIA Australia’s General Manager – Life Insurance, Damien Mu, described the Bendigo partnership as ‘significant’.
“This is not about competition with the retail market, this is about meeting a specific customer need.
“Bendigo is an attractive partner for a number of reasons. There is a high degree of affinity between Bendigo customers and the brand. They have 1.5 million customers and they are growing. And research shows that although they have a large number of customers, the majority do not have insurance at a level that actually meets their needs,” Mr Mu said.
56% of customers did not have life insurance, and a further 69% had no income protection cover
Research conducted into the bank’s customer database found that 56% of customers did not have life insurance, and a further 69% had no income protection cover. Bendigo Wealth Executive, John Billington, said the move marked an important step in supporting the financial health of customers.
“Research showed that underinsurance was an issue for our customers and we needed to do more to encourage them to take out cover and therefore protect their future financial health. By building a solution that removes some of the barriers to taking out life cover we believe that this is the ideal starting point,” Mr Billington said.
“The partnership with Bendigo Bank will help us to reach more Australians about the need for life insurance, outside of our traditional group and retail channels,” said Mr Mu.
“We recognise that many customers understand their insurance needs but prefer to purchase it directly from a brand that they know already. With more than 1.5 million customers, Bendigo Bank has a loyal customer base, so to be able to tailor a product directly to their needs is an important development for us.”
The product will be available to purchase online or over the phone from the end of June.
AIA hey? Didn’t I just read an article about AIA and it’s peculiar treatment of “existing conditions”.
Good luck Bendigo customers if you have a claim.
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