AIA Australia has announced it will launch a new sustainable income protection (IP) product in 2021, in response to some insurance sustainability issues.
The new product, IP CORE, was designed to align with the Australian Prudential Regulation Authority (APRA)'s guidance on product features that will drive sustainability by ensuring that benefits meet customer needs and expectations but pose far less risk of unexpected premium increases.
From January to September, AIA Australia will sell IP CORE alongside its existing IP product, Priority Protection.
“Life insurance is a community good, and IP plays a crucial role in ensuring Australians and their families can continue meeting their expenses and protecting their way of life when they’re unable to work,” said Damien Mu, chief executive officer and managing director of AIA Australia and NZ.
“We want to ensure our products move in line with community expectations; with IP CORE, we want to adapt so that we can continue to meet the needs of those who wish to protect their income in a way that is sustainable and affordable.”
With the early launch, the insurer hopes to ensure that advisers can begin transitioning their education, business, and customers ahead of the APRA guidelines becoming an industry standard. It will also allow time for them to improve the product according to adviser and industry feedback.
“We’re looking to be agile and to test views and expectations of IP CORE once we launch. We want to make sure customers understand the product and advisers see it as a valuable part of an overall insurance solution. This will allow us to strive for continuous improvement in our product offering,” Mu said.
“We want to spend the next few months working closely with customers, advisers, industry bodies, research houses, and regulators to ensure we can continue to deliver affordable and sustainable IP cover to Australians into the future.”
