The company will forgo fees for two years on business Priority Protection (PP) and Priority Protection for Platform Investors (PPPI) policies, as well as the AIA Vitality health program, for clients who apply for the products from today until 31 March 2018.
“AIA is continually looking for opportunities to demonstrate its support for improving the long-term wellbeing and health of clients through its adviser networks,” said AIA Australia chief retail insurance officer Pina Sciarrone.
“That is why we are waiving fees on PP and PPPI policies and AIA Vitality, to ensure advisers can offer more value to their clients.”
Ms Sciarrone said engagement with the AIA Vitality program had resulted in a drop in lapse rates for both PP and PPPI policies, with clients using the program being up to 40 per cent less likely to let their policies lapse.
“AIA understands that when clients embrace the value of life insurance and positive health behaviours at the same time, they go a long way to leading longer, healthier, happier lives whilst protecting their future,” she said.
These FSC members are getting desperate for new business which is already taking a hit (wait until next year when the LIF really starts kicking in!)
Just like AIA we are seeing the others waive policy fees and reduce premiums.
The problem is this is all just on NEW BUSINESS.
At the same time these FSC members (AIA included) are raising premiums for existing customers to pay for this.
The effect is to encourage churn which was not an industry issue before as now proven.
My submission to the Royal Commission will be to highlight this and these practices by the FSC members like AIA and ask if they can afford to discount for new business why they have to stitch up existing customers. Why would they not want to apply these types of discounts to existing customers to encourage client retention?.
Agreed! Offering policy fee waivers after jacking up premiums (even on Level policies) by 15% is an absolute joke. But they’re all doing it, so advisers/clients have nowhere to turn. Looking forward to all these archaic business practices being disrupted … the bigger they are, the harder they fall.