MLC Life Insurance released details to advisers last week regarding tailored premium adjustments that it will be making across its insurance product portfolios.
In what it says was a difficult decision, but one made necessary in order to achieve long-term sustainability, the insurer will be adjusting premiums for new customers from 15 July 2020, and for existing customers from 1 October 2020.
Originally planned to have been implemented earlier this year, Sean Williamson, MLC Life Insurance’s Acting Chief of Group and Retail Partners, notes in a statement that these premium adjustments, which comprise increases as well as some reductions, were postponed due to the onset of the Covid-19 crisis and the potential impact these changes may have had on its customers during such a difficult period for the entire community.
Giving additional context to these premium and rates adjustments, Williamson also referred to the critical importance of other factors that must contribute to the achievement of long-term sustainability for both MLC Life Insurance and the broader life insurance sector. He singled out technology as a key component in the quest to deliver greater efficiencies within the advice process and leading to a reduction in the costs associated with placing life insurance business on the books.
He also noted the importance associated with future product innovation which addresses benefits, definitions and product design, which will be shaped to achieve a better balance between benefits, affordability and fairness for its claimants.
Details relating to the nature and extent of the premium increases can be accessed via the MLC Life Insurance Adviser Portal’s Knowledge Base. Find out more here.
Imagine going to market in the midst of one of the greatest financial crisis in terms of job losses, impacts to business and personal wellbeing, with a message that says here is up to 32% increases on your insurances. All this at a time when they have spent (wasted) $300M to build a new technology platform that is frankly proving to be the biggest white elephant in terms of functionality, usability, and actual information available to advisers and clients. The masters at Nippon Life must be shaking their heads at the gross incompetence. As an adviser I now find reasons not to recommend MLC, because they clearly can’t be in a clients best interest in the long term.
Adjustments ?? Another word for increase sounds nicer though!
I cannot believe MLC are increasing premiums at a time they have implemented a new system that doesn’t work (and in the midst of a pandemic). They are not debiting customer premiums, they are sending out incorrect statements, they cannot deliver policy changes and customers are losing cover because of their errors. They are not telling advisers about the problems and are just hiding behind hold times of 1 hour plus hoping people will just give up. MLC also said they were not going to increase existing customers for at least 3 years when the LIF came in. Did they lie about this too? Total incompetence and arrogance. Will never be recommending them again and I would suggest all advisers check their current MLC customers because they are at risk due to MLC’s terrible new system.
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