We need a better response to those sorts of conditions<\/p><\/blockquote>\n
Musculoskeletal disorders, including recurring back pain, are also increasing, he added, concluding that \u201cA product which is designed for total and permanent disability is not the right response to that. We need a better response to those sorts of conditions.\u201d<\/p>\n
While there was general agreement among the panel with Ralph’s position, the adviser voice in the room, Perera Crowther’s Kristen Agius<\/strong>, shared a general concern relating to any new product initiatives that may offer lower-priced but more restricted benefits.<\/p>\nAgius said the challenge was how to evolve product design without simply limiting cover or forcing clients into narrower structures. <\/span>She floated the idea of staged payouts, suggesting the industry may need to rethink whether a single, permanent disability trigger is appropriate for episodic conditions.<\/span><\/p>\nDuring the discussion, Agius also raised what was very much an adviser-related concern, namely the challenge of recommending a new, lower-priced product – offering scaled-down benefits and possibly staged benefit payments – when the client’s condition might also have resulted in their claim being accepted under existing ‘full offer’ TPD or IP contracts.<\/p>\n
This uncertainty …may have the effect of potentially dampening the enthusiasm of advisers to embrace any new product solutions<\/p><\/blockquote>\n
Agius also raised what would be a general concern for many advisers of the uncertainty surrounding potential future pricing increases for such new offers, given the significant increases to base rates – for products such as TPD – that the industry has been experiencing in recent years. This uncertainty, according to Agius, may have the effect of potentially dampening the enthusiasm of advisers to embrace any new product solutions the industry may generate.<\/p>\n
As industry discussion and collaboration continues – where the panel made mention of the need to involve the consumer lobby and the law makers, Zurich\u2019s, Head of Retail, Tim Kane<\/strong>, emphasised that any reform must continue to cover mental health.<\/p>\nHe affirmed one in four applications for cover include a mental health disclosure:\u00a0\u201cWe do need a solution that covers mental health,\u201d he said, adding that severity-based or staged assessments could form part of the answer.<\/p>\n
David Creaven<\/strong>, Head of Client Partnerships at SCOR Australia & New Zealand, said the current construct can place claimants in a difficult position. To receive a TPD payout for mental health, a person must effectively be deemed permanently incapacitated \u2013 a determination that may sit uneasily with efforts to support recovery and return to work. Creaven’s concerns are explored further in the final part of this Zurich Sustainability Round Table…<\/p>\n