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Colonial to reduce insurance premium for members

Colonial First State (CFS) has announced an insurance premium reduction for customers of its FirstChoice Employer Super, Essential Super, FirstChoice Personal and FirstChoice Wholesale Personal products.

An average of 18 per cent will be slashed across the products, which is expected to save customers a combined $40 million a year effective from the first quarter of 2022.

The news comes after life insurer AIA was reappointed as CFS’ insurer following a “thorough and strongly contested process”.

“We’re delighted to reappoint AIA as our provider of insurance following a highly competitive tender process. AIA demonstrated significant uplifts in proposed service, technology, underwriting and claims management capabilities when compared with the other proposals we received,” CFS Superannuation CEO Kelly Power said.

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“The reduction in insurance premium for almost 220,000 customers is another example of how CFS continues to share the benefits of our scale with customers.

“We will continue to review our products and services to ensure our customers receive the best possible benefits at the lowest possible price.”

CFS is currently in the process of moving solely into a superannuation and investments business on the back of a 55 per cent stake sale to private equity company KKR which is expected to be completed in the coming months.

Following its completion, CFS will be owned in a partnership by CBA and KKR.

Colonial to reduce insurance premium for members
Colonial to reduce insurance premium for members
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