AIA and Sovereign products merged into one

A year after AIA and Sovereign came together the newly merged company has released a new product suite and its much-anticipated Vitality product.

Monday, July 29th 2019, 9:00AM

AIA will launch its new combined product suite next week, which brings together the best of the AIA and Sovereign businesses, Chief Product and Vitality Officer Len Elikhis says.

AIA's new, combined product goes under the "Living" brand. It has made more than 100 enhancements to align its existing AIA and Sovereign products and these enhanced product ranges form the basis of the new Living product.

AIA Living offers customers market leading protection, a competitive pricing structure including a multi-benefit discount, and a simplified commission structure that supports good advice outcomes, Elikhis says.

"AIA Living has been designed to deliver outstanding customer value, particularly when combined with AIA Vitality."

Advisers get to issue policies

Advisers will be able to quote and apply for AIA Living with AIA Vitality using a new digital quoting and application solution tool, AIAHub.

Elikhis says AIAHub should "make it easier for advisers to do business with us."

He describes it as an "end-to-end digital application solution: quoting, medical pre-assessment, underwriting, and pipeline visibility."

“We are excited about our new proposition for our customer and advisers and we look forward to realising our vision of helping New Zealand become one of the healthiest and most protected nations in the world.”

New commission structure

AIA is changing its commission structure, but it is not changing the total amount of commission it pays advisers.

Elikhis says it addresses points raised by the FMA in its review of the life insurance industry. Arguably, the biggest change is the removal of volume-related bonuses to advisers.

"We have also taken the view that volume and persistency related commission bonuses drive unnecessary complexity and risk distracting attention away from the important work that advisers perform for their clients."

He says the commission structure is straightforward to understand. AIA offers a flat initial commission rate across all risk products and a choice of a “Standard” option (higher initial commission, lower renewals) or “Pendulum” option (lower initial commission, higher renewals).

AIA Vitality arrives

Vitality is a scientifically-backed health and well-being program that supports members every day to make healthier lifestyle choices.

Members earn rewards through AIA's program partners and discounted insurance premiums based on the member’s AIA Vitality status.

There are various levels. The first is "Know your Health" where members get discounts at Green Cross and Molemap. Then there is "Improve your Health" which involves smoking cessation programmes, and discounts to Garmin and Fitbit devices. Finally there is a rewards programme using the likes of Air New Zealand Airpoints, free movie passes with Hoyts and discounts at Forme Spa and Wellbeing.

Elikhis says AIA Vitality provides advisers with the opportunity to have more holistic conversations with clients and helps to make insurance more engaging and affordable for engaged members.

AIA Living

AIA Living is made up of Life, Trauma, Income Protection, Total Permanent Disablement, and Health cover.

Most existing AIA and Sovereign customers will be able to access AIA Living without any underwriting. In addition, AIA will give consideration to a customer’s existing policies in the calculation of the Multi-Benefit Discount on any new AIA Living business.

Elikhis says AIA's Living products will be at the top of the market for pricing and that position will improve if Vitality products are used as they will attract a discount on premiums.

The AIA Living pricing structure includes, competitive base rates across the entire product range; a tiered multi-benefit discount (10%, 12.5%, and 15%); and AIA Vitality discounts starting at 10%.

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Tags: AIA FMA health insurance insurance Life insurance TPD Vitality