Time running out for life companies to announce premium increases
Time is running out for insurance companies if they plan to start increasing their premiums on July 1 to compensate for tax changes. Generally companies have to give policyholders around 30 days notice before increasing premiums.
Thursday, May 27th 2010, 7:29AM
Those still to announce their premium changes are AXA, ING Life, Pinnacle and AIA.
AXA chief executive Ralph Stewart says the increase in life insurance tax creates an interesting situation where there is a response to a legislation directive that impacts the industry equally.
He says AXA doesn't want policy holders to be in a position where they have to pay a much higher premium, they don't want adviser remuneration cut and they don't want a reduction in policy benefits for customers.
"It's a triangle of events, and we'd like to balance all three with our response."
He told Good Returns an announcement on its changes will be made "as soon as it can".
AIA's head of distribution and marketing Darrin Franks says AIA's approach to the life insurance tax increases is getting signed off in Hong Kong and will be released this week.
It has been reported that Pinnacle Life will increase premiums by 10%, however principal Ed Saul says that is its worst case position and it is reviewing to see if it can afford a smaller increase.
It is expected to release further details next week.
ING says it will be in a position to talk about its approach in about two weeks.
So far Good Returns has reported on approaches to life insurance tax increases by Fidelity Life, AMP, Sovereign, TOWER and Asteron.
| « Fidelity Life taking a different approach to tax increases | Pinnacle says no justification for some premium increases » |
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