AIA Australia has launched a package of enhancements to its flagship Priority Protection product range this week.
The enhancements, which affect both product features and pricing, are part of the insurer’s regular review process and will also include updates to the insurer’s integrated AIA Vitality health and wellness lifestyle program.
The headline initiatives in this round of enhancements include:
- Increase in the AIA Vitality initial discount for lump sum policies linked with AIA Vitality
- Introduction of a new ‘Bundled Discount’ offer to replace the existing Multi Plan Discount
- Product enhancements to the Priority Protection TPD Maximiser and IP products
AIA Vitality Enhancements
The main upgrade within AIA Vitality relates to its initial discount for lump sum policies with AIA Vitality increasing to 12.5% (previously 7.5%), while new partners have been added to the program with new partner benefits to be introduced in the first half of 2016.
Members will be able to receive vouchers with new partner Boost Juice while improved benefits have been added to the program, including gift vouchers redeemable at Myer, Woolworths, JB Hi-Fi, Caltex Woolworths and Rebel Sport. AIA said Vitality program members can receive these benefits as a result of making positive choices such as buying healthy foods or exercising.
AIA Australia, Chief Retail Insurance Officer, Pina Sciarrone said the appeal of the program was reflected in client retention results as the “rewards system encourages clients to be more engaged with their insurance on a day-to-day basis and improves lapse rates, which is a key consideration for advisers”.
“By offering a unique program like AIA Vitality, advisers have the opportunity to provide demonstrable value for money to their clients over the life of the policy, which can increase engagement and retention of clients,” Sciarrone said.
“Indeed, the results to date show that by giving clients the chance to engage with their insurance on a daily basis through the program, they are 40% less likely to lapse on their life insurance policies.”
New Bundled Discount
AIA also stated that the 12.5% discount applied for lump sum policies with AIA Vitality would also be introduced on eligible Lump Sum Benefits when Lump Sum cover and Income Protection are purchased together, replacing the insurer’s existing the Multi Plan Discount.
Priority Protection Product Enhancements
Additional product enhancements have also been made to AIA Australia’s Total Permanent Disability (TPD) Maximiser and IP products.
Enhancements to Total & Permanent Disablement Maximiser structure:
- Increased flexibility in premium frequency (now monthly, half-yearly and yearly)
- Inclusion of optional benefits of Family Protection, Needlestick Injury (Occ AA only) and Waiver of Premium (TPD rider only)
Income Protection Plan:
- Involuntary Unemployment Waiver of Premium introduced (non Superannuation only)
- Day 1 Accident (3 day Qualifying Period) now added to Superannuation
- Claims Escalation now linking to CPI only (previously was a maximum of 3% and CPI)
- Extended Indemnity – initially non Superannuation only, superannuation functionality to be added in 2016
All product changes are included in a new PDS, version 15 of the present series, which advisers can access from their AIA Australia contacts and the riskinfo Resource Centre, while additional material relating to the enhancements can be accessed through these links:
Priority Protection Discount Case Studies
