nib launches into life

nib NZ is unveiling a new group life and trauma insurance product aimed at employers with 15 or more staff at roadshows around the country.

Wednesday, May 24th 2023, 6:45PM

Head of distribution Chris Carnall told the Wellington meeting with advisers, the fourth of 15 meetings, that nib will begin selling to the general public from June 1 the Life and Living policies for individuals and couples that it acquired when it completed the $45 million Kiwi Insurance purchase just over a year ago.

The Life and Living policies are offering the same cover at the same prices as when Kiwi owned the life business, just rebranded as nib policies, but the company will also be offering the group product for the first time, Carnall said.

nib has an agreement with Kiwibank under which the latter is exclusively referring its retail customers requiring life insurance to nib.

Stu Crowther, nib's adviser partner manager, told advisers his company decided to stick with the existing Life and Living product because any changes would have significantly delayed the launch.

He described it as “a typical bank insurance product”, which means it's a simpler product than many sold through advisers, and is generally cheaper, although that means it has fewer benefits.

But it does include life insurance cover up to $10 million, funeral cover up to $15,000, serious illness and trauma cover up to a maximum of $1 million as well as income protection up to a maximum of $6,000 a month.

Usually cheaper

The nib product won't always be cheaper than others on the market, but will usually be cheaper, and is particularly suited to older clients, Crowther said.

The commission paid to advisers is an initial 20% and 20% on renewal with a two-year clawback if a policy lapses.

Ian Sargeant, nib's head of partnerships and group, said the new group policy would also suit iwi and sporting entities looking to offer an increased value proposition to their members.

The current environment, in which employers are finding it difficult to attract and retain staff, “has created an almost perfect storm” to make the new product a compelling offer, Sargeant said.

nib has been enjoying steady sales increases of its group health policies and the new group life and trauma product will complement those health policies, he said.

Employers can choose either two or three years salary in the case of an employee's death and trauma coverage up to $20,000. The product doesn't include funeral or income protection insurance but is otherwise identical to the Life and Living individual policies.

It will be administered by actuary firm Melville Jessup Weaver.

Tags: nib