Synchron has announced a new partnership with AIA Australia, which will see the launch of a new life insurance product.
Speaking at a media briefing in Sydney yesterday, Synchron director Don Trapnell said that before AIA agreed, he had approached several Australian insurers to help create the new fixed-term level product.
Mr Trapnell explained that when Synchron approached AIA, the life insurer was already in the process of developing its own product but wanted to add in some of the "design elements" Synchron had proposed based on research conducted during a recent study tour of the UK.
"AIA is in the process of designing a level premium life and TPD product that incorporates many of the design elements that we brought back from the UK," Mr Trapnell said.
"We approached several Australian life insurers with this brief and were delighted to find AIA Australia was up for the challenge and looking at similar insurance solutions."
AIA Australia's retail product manager, Steve Baxter, said, "While we're keeping much of the detail under wraps for now, what we can reveal is that soon clients will be offered fixed-term level premiums that complement current stepped and level options.
"We are looking at providing more level options; we want to have some shorter terms available, enabling the product to be more affordable and have stable premiums," he said.
"The more options give advisers more opportunity to build a portfolio of protection for the client so they can better meet their needs and better tailor their offering for the client."
Mr Trapnell expects the new product to be finalised later this year.
"Fixed-term level life insurance products have been widely available in international markets for some time, and we think it's time that Australians had more choice when it comes to how they structure their life insurance solutions," he said.
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