AIA first insurer to offer Airpoints
AIA has become the first insurer to offer Airpoints Dollars on its insurance products - but one commentator is questioning whether it's a good development.
Tuesday, May 1st 2018, 10:49AM
by Susan Edmunds
From Tuesday, clients who buy eligible AIA products will be able to earn one Airpoints Dollar for every $100 of premium they pay.
Until October 31, the insurer will triple that.
“Anyone purchasing an eligible AIA risk insurance product will be able to redeem their Airpoints Dollars to enjoy holidays here or overseas with Air New Zealand or its Star Alliance partner airlines, or dine out, or buy products including wine and electronics, through the Airpoints Store,” said AIA’s head of product and marketing, and acting head of distribution, David Savidan.
“And of course as well as enjoying the immediate benefits of our Airpoints partnership, our clients will be able to enjoy the ongoing benefit of the peace of mind that comes from being insured with a member of the AIA Group, the second-largest insurer of its type in the world.”
AIA said it applied to all on-sale products.
Russell Hutchinson, director of Quality Product Research and Chatswood Consulting, said it was unlikely to put any pressure on premiums.
Insurance commentator Mike Naylor, of Massey University, agreed: "My understanding is that the payouts AIA will have to make are quite low and within their existing profit margin. Insurers have fairly high marketing and advertising costs, so this is a cost-effective approach. AIA are keen to take market share, but are reasonably unknown."
David Whyte, former general manager of AIA in New Zealand, said advisers would take little notice of the offer.
"I don't think it's a particularly healthy development. I think products in the market should stack up on a cost/benefit ratio rather than any ancillary gifts or handouts that go along with it."
He said advisers who suggested a product based on something such as loyalty points should look at their advice processes.
Air New Zealand’s Airpoints programme has more than 2.8 million members.
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