Asteron premiums to increase 7.5%
The new life insurance legislation, which was introduced in draft form nearly two years ago, will significantly increase the tax paid by life insurers from July 1.
Asteron general manager of marketing and operations Antony Vriens says Asteron came to the conclusion that the fairest and most logical way to manage the tax increases was to apply the necessary increase to both existing and new stepped premium policies in the SmartLife range.
"Distributing the cost this way means the impact is minimised for both new and existing customers which is important to ensure the issue of underinsurance is not intensified.
"We think it is likely that suppliers who are not making small changes to existing premiums now may need to impose significant increases to existing customers in five years time, which may result in unintended cancellations."
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