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.
Advisers can also click this link to view the the MLC Life Insurance message to its customers regarding the premium adjustments: