CommInsure Protection products will no longer accept new business from 31 March 2020, says AIA Australia in announcing the next step in integrating with CommInsure Life and streamlining the combined Retail Advised Life Risk business.
A statement from the insurer says that in November 2019, AIA Group started its Joint Cooperation Agreement (JCA) with the Commonwealth Bank of Australia to purchase its life insurance business known as CommInsure Life (See AIA Finalises CommInsure Takeover).
AIA Australia and New Zealand CEO, Damien Mu says in the latest announcement that the strategy behind the JCA is to draw on the combined strength of the two organisations “to deliver on our purpose of making a difference in people’s lives, through innovative propositions to Australian advisers and their clients, taking into account customer need and product sustainability”.
The statement says that a key outcome is that CommInsure Protection products will no longer accept new business from 31 March 2020.
“To deliver the best of both product sets, AIA Australia has enhanced its Priority Protection product with an involuntary unemployment benefit, which is a key CommInsure Protection feature,” the company says.
It notes that AIA will support current CommInsure Protection policyholders with the full range of customer service and support that they receive now, for as long as they remain policyholders.
It will also continue to “improve the CommInsure Protection products to ensure they provide valuable, contemporary cover for current policyholders. For instance, AIA will automatically upgrade CommInsure Protection with all benefits added to Priority Protection, where the upgrade does not result in an increase in premium rates. AIA is actively exploring the addition of AIA Vitality to CommInsure Protection”.
Mu says that CommInsure customers existing cover remains the same “with the certainty of automatic upgrades to benefits where it doesn’t affect premium rates. We will continue to support our customers with the same high-quality service that they have always experienced in the past”.
“For advisers, our focus remains on providing them the best support and the best proposition for their clients,” the statement says.
Together, AIA Australia and CommInsure Life offer a range of products to more than 3.8 million Australians.