Hello

We have a brief Cover Notes for you today which focuses on one main story.

The issue which has grabbed headlines in the past 24 hours is lengthy story on TV3’s Campbell Live last night about Sovereign refusing a claim to a man with prostrate cancer.

All life insurance advisers should be watching this story. While it is a tragic story, it is also a classic example showing how the media can beat up on the life insurance industry.

It raises two other critical issues. One is the risk on non-disclosure. The second relates to the risks of switching a policyholder from one company to another.

It’s a little unclear what happened in this case and whether the cover was moved from AMP to Sovereign on takeover terms. Maybe the facts will emerge over time.

You can read my thoughts about it here and you can leave your comments on the issue at the end of the Blog.

The other news story we have for you this week is one about AIG deciding to stop offering permanent term products from August 31.

Insurance News

Permanent term ends for AIG
AIG Life will stop offering permanent term products from August 31 this year. More