News that Zurich has changed the way it prices life policies transferred to third-parties attracted plenty of reader interest this week…

Zurich Financial Services has released a statement to advisers this week announcing it is establishing a new Death Cover class.

Established for the purpose of ensuring the long-term sustainability of its portfolio, and clearly directed towards policy co-ownership circumstances, the new class or group applies for policies where:

  • There is an arrangement where someone else will have a legal or beneficial interest in the policy (such as co-ownership), and
  • That arrangement involves a business that carries on a financial services business related to life insurance policies, and
  • In connection with that arrangement:
      • There is or could be an assessment of the insured person’s circumstances, such as a health assessment or statistical review, and
      • Someone other than the policy owner could receive some or all of the benefits from the policy.

…policies in this class will have premiums significantly increased

The insurer advises policies in this class will have premiums significantly increased. This increase will apply from the next premium payable for anniversary notices generated from 28 March 2026 onwards, with premiums due at least 30 days later.

Riskinfo understands the proposed action has raised concerns, particularly among clients and advisers, with one adviser expressing reservations with the nature of this new death cover class and its potential implications for client entitlements, as well as for advisers and for the broader sector.

In its statement, Zurich also informed advisers that if a policy is removed from the new risk class – for example, if the new policyowner under that arrangement transfers the policy back to the previous policyholder, the pricing of the policy will reduce since it will no longer be part of the new risk class.

If this happens, Zurich notes it can assist with a 3-month premium waiver for policies that are in the new risk class on 28 March 2026, while the previous policy holder is obtaining advice and deciding next steps.

…policies in this new risk class represent a higher risk than the broader portfolio

A Zurich spokesperson has told Riskinfo that policies in this new risk class represent a higher risk than the broader portfolio due to the altered policy ownership and funding structure.

How the sector responds to this development will be monitored as the market considers the implications of introducing new pricing classes to in‑force business.

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7 COMMENTS

  1. Zurich just piling on to the cost of living with their increase to TPD and IP again, and now found a way, for the first time in living memory, to increase Term Life rates using the pettiest of justifications.

    I run a large risk practice, and we are now putting Zurich and OnePath on ice indefinitely. Mostly because they are desperate for ways to block new business and gouge existing.

  2. I had a call from my BDM that my client's premiums are going to be increased by 4 times! (400%!!!!) The client already couldn't afford the policy to begin with, now the client and his family are stuck in limbo if the policy gets cancelled/cannot longer be funded after this 400% increase. This is clearly Zurich's intention not honour there commitment to payout claims causing consumer harm to the life insured and their family. I feel a fiduciary responsibility to uphold the good name of the financial services industry, we are already under fire considering recent events, with this sort of behaviour from an institution, how can faith ever be restored?
    Which class of policy holders will they target next? 20 year old? 30 year olds?

    • I am wondering if you are missing the point, or if you are trying to spread misinformation.
      Everything you have said above does not apply to the affected policies.

      • Are you saying I have misquoted what my Zurich BDM advised me? It has been confirmed by Zurich that affected policies will be subjected to 400% increases = not misinformation. Zurich's behaviour is undefendable and that's not misinformation either. Very interested to know what you think the point is?

    • People who have claimed on their other policies? People who were underwritten 10 years ago & haven't confirmed they are still in good health? Two weeks ago such thoughts were impossible. While hidden behind a smokescreen of ownership, everyone knows this is an attack on iExtend's model of ensuring policies on vulnerable lives are cancelled before a claim. In the same week they are raisng premiums across the board for TPD and IP they directly target less than 100 lives that have suffered health problem since buying their policies. Guaranteed renewable has become meaningless for Zurich / OnePath clients.

      And, full disclosure, while I do not work there, I am a founder and shareholder in iExtend (as well as being a 47 year risky).

  3. Just to put this in context, quick search reveals:
    'Zurich Life Insurance Profit Results Australia: Zurich Life Insurance in Australia has reported strong financial results for the fiscal year 2025. The company achieved a record Business Operating Profit (BOP) of USD 2.3 billion, reflecting a 10% increase excluding prior year one-offs. The Core Return on Equity (ROE) climbed to a best-ever 26.3%, and the Core Earnings Per Share (EPS) rose by 7%. Zurich's performance in Australia is a testament to its commitment to delivering value and growth for its customers and shareholders.'
    Not sure how accurate this statement is….clearly there is no commitment to delivering 'Value' to its customers, just out of control 'growth' in premiums!

  4. So, are Zurich saying that because there is a partial change in ownership that the chance of dying has gone up? Are they expecting the new partial owners to somehow “influence” whether the insured person lives or dies?

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