Competitive streak an asset for Tower

Price, speed and simplicity are of the essence when Tower comes to sell its term and total and permanent disability (TPD) products, a strategy that has helped it triumph in the term and TPD award category this year.

Tower has taken out gold in the category, behind silver runner up ING Life Risk and bronze runner-up AIG Life — as well as winning this year’s Risk Company of the Year award.

“In my view, term (and TPD) should be a very simple purchase both for advisers and clients, and that is what we’ve been striving to achieve over the past year, said David Callender, Tower chief executive, retail life.

“We’ve been trying to ensure the relatively standard term (and TPD) cases are accepted very quickly, in days rather than weeks and months.

Tower’s term and TPD price is competitively positioned in the top quartile, and the major benefits are there, and they are also competitive in the terms and conditions, he said.

“While advisers generally look for a good quality insurance product, when it comes to term insurance they look for one that is quite competitively priced and where the basic definitions are solidly in place.”

Mark Vilo, head of marketing and retail products, ING Life Risk, attributed the insurer’s success in the category to brand differentiation through product and service enhancement.

“It’s about innovation with our existing products and introducing new products, as well as focusing on the relationships we have with advisers.

“We’ve been working very hard this year from an underwriting and service perspective to make sure we deliver on our promise — that is, to be accessible to advisers and be experts in what we do.”

Part of the commitment ING has made to advisers is to look for solutions for their clients, rather than just looking at one dimensional solutions for the products.

“It’s about coming back to advisers with a number of alternatives when we get an application from them for insurance, if that is indeed necessary.”

AIG attributed its showing in the category to the most comprehensive overhaul in April this year of its Priority Protection product since it was first launched in 2004.

“Not only has the benefit range been extended, but pricing has been reduced in a number of areas,” according to general manager of distribution Brett Clark.

He said the launch follows a “complete review of all aspects of the product, incorporating carefully gathered feedback from advisers”.

“Our agenda has once again been adviser driven, to help advisers drive increased business levels, to tap into new markets and get more people covered.

“We believe our review product range goes a long way in achieving this.” he said.

Key product innovations include improved entry ages across the entire product, including for people aged 75 next birthday for term insurance cover, and aged 64 next birthday for critical illness cover.

Increased premium discounts were introduced for term insurance cases exceeding $1 million, while disablement cover was extended to $3 million.

A new limited term insurance contract designed specifically for sub-standard risks that may have been declined or deferred in the past has also been launched.