OneCare, the insurance arm of ANZ Wealth, will lock down premiums for new policies for two years from 1 July 2016, but will first implement a 10% increase on selected policies from 17 January 2016.In a note sent to advisers OneCare stated the increase would apply to new and existing clients using its income and business protection products offered through the Income Secure range.<\/p>\n
ANZ Wealth said the reasons for the increases were due to ‘challenging market conditions’ which had placed insurers under ‘significant cost and portfolio pressures’.<\/p>\n
It also stated that ‘regulatory and funding costs have increased thereby contributing to an increase in overall operational costs on insurers’.<\/p>\n
Despite this OneCare announced the two-year premium rate lock for all new policies from 1 July 2016, the date at which the Life Insurance Framework (LIF) will commence, but said the start date may be altered dependent on any further changes to LIF by the Government.<\/p>\n
The rate lock would also be reviewed from 1 July 2017 and excludes increases to the original cover amount within the first two years of the policy, stepped premiums, policy fee increases, and any Government imposed charges.<\/p>\n
Zurich Base Premium Freeze<\/strong><\/p>\n The rate-lock announcement coincides with Zurich also confirming it will effectively be freezing base premium rates for new business policies written during 2016.<\/p>\n In a product update release being sent to advisers this week, the insurer stated that new Zurich Wealth Protection policies written between 1 January 2016 and 31 December 2016 would retain unchanged underlying base rates for the first two years of cover, with the only adjustments related to normal age and CPI related increases.<\/p>\n \u00a0MLC Rate Reductions<\/strong><\/p>\n The rate freeze announcements came at the same time as MLC has stated it would cut Life and Total and Permanent Disability (TPD) premiums by 15% effective from 23 November.<\/p>\n The rate cuts would apply to stepped premiums for life cover insurance, as well as TPD extension insurance for new clients, at or when they reach 45 years of age or over on the MLC Insurance and MLC Insurance (Super) products.<\/p>\n New clients aged between 40 and 44 years old within those products will receive a 2.5% cumulative rate cut each year until they reach 45, which MLC stated would represent a full 15 per cent saving at that point, from which the 15 per cent rate cut will continue to apply.<\/p>\n MLC Insurance, Executive General Manager, David Hackett<\/strong> said the rate cut at aged 45 was useful when many premiums increased with age and the cut would help more people retain insurance to retirement age.<\/p>\n Hackett said the rate reductions, which come off the back of the recently announced partnership and sale to Nippon Life, would make MLC more competitive in the market and was likely to attract new business.<\/p>\n","protected":false},"excerpt":{"rendered":" OneCare, the insurance arm of ANZ Wealth, will lock down premiums for new policies for two years from 1 July 2016, but will first implement a 10% increase on selected policies from 17 January 2016.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48,270],"tags":[],"class_list":["post-31718","post","type-post","status-publish","format-standard","category-company-news","category-remuneration"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/31718","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=31718"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/31718\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=31718"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=31718"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=31718"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}