AIA Australia has today announced the execution of its Joint Cooperation Agreement with the Commonwealth Bank of Australia, which it says is an alternative completion structure for the purchase of CommInsure Life and certain affiliated companies.
This alternative completion structure includes a strategic distribution agreement with CBA, which has been extended to 25 years (see also: CommInsure Sale Update).
In a statement announcing the execution of the agreement, AIA says the new partnership will deliver significant strategic benefits for the insurer and enhance its competitive advantage in what it refers to as an underinsured Australian market.
It adds the acquisition will also allow AIA to reach CBA’s customers with its expanded value proposition focused on life, health and wellbeing.
The insurer added it continues to make significant strategic investments in health and wellbeing programs to modernise its life insurance business in Australia and to service the changing way consumers think and feel about life insurance.
AIA Australia and NZ CEO, Damien Mu, commented “This is a transformative deal that further strengthens AIA’s market position, and with it our ability to drive change and new initiatives in the industry. Together we will work to achieve our purpose to Make a Difference in people’s lives, and to champion Australia and New Zealand to be the healthiest nations in the world.”
Mu also noted what he said was a transformation happening across the industry, where insurers have to become much more connected, to understanding customer needs and being more able to engage customers with a holistic and integrated life, health and wellbeing proposition.