{"id":36964,"date":"2017-05-09T19:46:51","date_gmt":"2017-05-09T09:46:51","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=36964"},"modified":"2017-05-10T07:01:07","modified_gmt":"2017-05-09T21:01:07","slug":"principle-of-level-premiums-strong-but-commitment-weak","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2017\/05\/09\/principle-of-level-premiums-strong-but-commitment-weak\/","title":{"rendered":"Principle of Level Premiums Strong, But Commitment Weak"},"content":{"rendered":"<div id=\"polls-180\" class=\"wp-polls\">\n\t\t<div class=\"pollHeader\"><strong>Should your advice practice be writing a higher proportion of level premium life insurance business?<\/strong><\/div><div id=\"polls-180-ans\" class=\"wp-polls-ans\"><ul class=\"wp-polls-ul\">\n\t\t<li>Yes <small>(59%)<\/small><div class=\"pollbar\" style=\"width: 59%\" title=\"Yes (59% | 120 Votes)\"><\/div><\/li>\n\t\t<li>No <small>(35%)<\/small><div class=\"pollbar\" style=\"width: 35%\" title=\"No (35% | 70 Votes)\"><\/div><\/li>\n\t\t<li>Not sure <small>(6%)<\/small><div class=\"pollbar\" style=\"width: 6%\" title=\"Not sure (6% | 12 Votes)\"><\/div><\/li>\n\t\t<\/ul><div style=\"text-align: center\"><\/div><\/div>\n\t\t<input type=\"hidden\" id=\"poll_180_nonce\" name=\"wp-polls-nonce\" value=\"e55d9a98f5\" \/>\n<\/div>\n\n<p>Mixed messages dominate our latest poll results to the extent that while most advisers say they should write more level premium life insurance policies, their commitment to delivering this outcome seems tempered by disillusionment in some quarters with the approach taken by some insurers to managing their level premium books of business.<\/p>\n<p><!--more-->As we go to print, six in ten advisers participating in our poll believe their practice should be writing a higher proportion of level premium life insurance contracts. 35% think they have the proportions right, while 5% are unsure.<\/p>\n<p>On the surface, this result indicates level premium business levels may well increase, based on sentiment. The comments we&#8217;ve received, however, suggest a level of frustration amongst the adviser community, some of whom appear to have lost faith in the system being able to deliver what they believe to be genuinely level premium product outcomes.<\/p>\n<p>Issues include:<\/p>\n<ul>\n<li>CPI linking on many level premium books of business means level premiums still rise every year<\/li>\n<li>The anecdotal rise in the frequency of life companies increasing base premiums across the board for inforce series of level premium business<\/li>\n<li>A disconnect between price increases for level premium books compared with similar books of stepped premium business, where previously the increases across stepped and level retained their relative pricing differences<\/li>\n<\/ul>\n<p>While this poll set out to gauge the appetite in advisers to write more level premium-style business following the recent announcement by AIA Australia (see: <a href=\"https:\/\/riskinfo.com.au\/news\/2017\/05\/01\/aia-australia-rolls-out-term-level-premiums\/\" target=\"_blank\">AIA Australia Rolls Out Level Term Premiums<\/a>), the message appears to be that while the appetite is there, advisers lack confidence in the industry, in general, being able to deliver what they believe to be genuine level premium solutions for their clients.<\/p>\n<p>We also said we&#8217;d compare this current poll result with that of an almost identical poll question from 2013. See the table below for the 2013 outcome, and let us know what you think this means because we&#8217;re not sure. Also note that more than double the number of advisers has voted in this poll compared with four years ago, suggesting that while the results are almost identical, there appears to be more interest in this issue in the current life insurance industry environment&#8230;<\/p>\n<figure id=\"attachment_36978\" aria-describedby=\"caption-attachment-36978\" style=\"width: 3548px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/riskinfo.com.au\/news\/files\/2017\/05\/Riskinfo-Poll-4-June-2013.png\" rel=\"attachment wp-att-36978\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-36978\" src=\"https:\/\/riskinfo.com.au\/news\/files\/2017\/05\/Riskinfo-Poll-4-June-2013.png\" alt=\"The results from this 2013 Riskinfo poll are almost identical with our current poll on level premium policies...\" width=\"3548\" height=\"1184\" srcset=\"https:\/\/riskinfo.com.au\/news\/files\/2017\/05\/Riskinfo-Poll-4-June-2013.png 3548w, https:\/\/riskinfo.com.au\/news\/files\/2017\/05\/Riskinfo-Poll-4-June-2013-300x100.png 300w, https:\/\/riskinfo.com.au\/news\/files\/2017\/05\/Riskinfo-Poll-4-June-2013-768x256.png 768w, https:\/\/riskinfo.com.au\/news\/files\/2017\/05\/Riskinfo-Poll-4-June-2013-1024x342.png 1024w\" sizes=\"auto, (max-width: 3548px) 100vw, 3548px\" \/><\/a><figcaption id=\"caption-attachment-36978\" class=\"wp-caption-text\">The results from this 2013 Riskinfo poll are almost identical with our current poll on level premium policies&#8230;<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Mixed messages dominate our latest poll results to the extent that while most advisers say they should write more level premium life insurance policies, their commitment to delivering this outcome seems tempered by disillusionment in some quarters with the approach taken by some insurers to managing their level premium books of business.<\/p>\n","protected":false},"author":3,"featured_media":37033,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49,4],"tags":[4247],"class_list":["post-36964","post","type-post","status-publish","format-standard","has-post-thumbnail","category-polls","category-products","tag-feature"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/36964","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=36964"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/36964\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/37033"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=36964"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=36964"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=36964"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}