Asteron revamps trauma, commissions

Asteron Life managing director Nadine Tereora said a common piece of feedback from advisers was that the industry often paid out large sums to customers on trauma claims, when their condition did not need that level of money - yet.

“There’s a big temptation to spend that lump sum payment on consumer goods leaving little, or worse nothing, when their condition progresses.” 

In response, Asteron Life has introduced the Major Trauma benefit – an optional benefit that lets customers reserve some cover for a more severe recurrence of a condition, or a new major condition in the future - if their initial condition is not “major”. Taken together with Asteron Life’s Early Trauma benefit, customers can claim up to three times for the same or related condition.

David Drillien, executive manager of product, underwriting and new business, said Asteron Life’s core trauma product remains largely unchanged. “We know what we currently have is a great trauma product, but we wanted to take on board adviser feedback as well as look at ways we could provide a more cost-effective trauma option for customers.”