AIA Australia has announced it will be hosting a national series of forums to outline its plans to assist advisers transition into the proposed new Life Insurance Framework environment.
Set to cover all capital cities across September and October, the forums are designed to help advisers understand the potential impacts of the reforms on their businesses in the short to medium term. The insurer says the forums will provide an opportunity for advisers to share their ideas and give feedback on future product design, and ways AIA Australia can improve overall service delivery.
We understand …advisers are currently facing a difficult change to the way they do business
AIA Australia’s Chief Retail Insurance Officer, Pina Sciarrone, noted how important it was for advisers and insurers to work together in response to the industry-wide reforms: “We understand that with the latest reforms, advisers are currently facing a difficult change to the way they do business. That’s why we are fully committed to helping advisers transition in the best possible way to ensure both the sustainability of their businesses, and the ability of consumers to access quality advice and affordable life cover into the future.”
Ms Sciarrone highlighted four key areas in which she says AIA Australia will work with advisers to develop new initiatives:
- Product development
- Service delivery
- Client development management support
- Business growth
The insurer cites two recent examples of service initiatives it says reflect its attitude towards developing better solutions for advisers and clients, namely its Tele-Application and Client Complete services. It says these services are designed to increase the amount of information that can be submitted online, thereby reducing the administrative process for clients and advisers.
AIA is encouraging advisers to register for this roadshow series by visiting its dedicated website at takingaction.aia.com.au.
you want to help? Stop the anti-competitive 3 year claw-back, that’s all the help we need!!
Dear Pinna,
With a 3 year “claw back” on the table, no adviser will want to write business for you or anyone else, in case the client becomes unemployed, or divorced, or becomes too sick or hurt to maintain Life/TPD premiums,or changes jobs with an employer prepared to foot the bill for all his/her insurances as part of the salary package, or has some other adviser offer cheaper premiums at the expense of a lesser contract, or has a life company increase premiums by 85.0% as one Life company has just recently done due to poor underwriting/claims, in the first place.
No Licensee will be prepared to take on any new advisers because should that adviser move on or sell his/her business, the claw back won’t effect the original adviser but it will effect the Licensee if there’s a lapse/cancellation under the 3 year “claw back”.
The whole situations a joke but lets bash the adviser because he or she has complete control over all those events….. for you or anyone else don’t they ?
Sorry Alleycat but the point about another adviser ‘coming in and offering a cheaper contract that is sub-standard’ is a cop out. Don’t you educate your clients about cost vs quality?
Also if you’ve provided the client with IP with a disability premium waiver added to it the fact that they are too sick or hurt to pay their premiums is a moot point. Wouldn’t they be on IP claim?
And how happy are you that a life co takes on a policy standard when you know it should be loaded or an exclusion applied?
She has a valid point though John Unfortunately too many people are driven by premium cost ? not by design but by decree Premiums are for most middle aged clients are to expensive and although they know they need it they will opt for the cheaper version on the basis that something is better than nothing and feeding the family comes first
If you don’t try to do something and give them the FULL story of what they are forfeiting then they will go with another adviser or simply cancel it and hope for the best
In case you have not noticed both AMP and One Path have recently increased their premiums { AMP 10% on level premiums} how nice of them ! I guess the others will follow suit as to do it after January 1st would certainly “fly” in their faces
Most of my clients are tradesman and live from week to week they cannot afford the premiums for the cover they know they should have and consequently will take a 2 year benefit for cost rather than nothing or the over priced Age 65.
The insurers have a captive market and can price out the occupations or age catagories they want without justifiable reasoning. Look what AMP have done with what’s left of the legacy and very good AC&L policies they are in some cases twice the price as a competitive company.
And were is the next profit jump going to come from ? Less commission and over bearing 3 year responsibility periods
What a joke this whole thing has become.
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