Aussie Home Loans reaches into insurance space
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Aussie Home Loans is moving into the risk insurance space, introducing a range of insurance products with affordable premium rates.
The insurance cover can be taken up without a medical exam or blood test. Life insurance is available for $380 per year. Aussie is running an aggressive campaign to market the products. They will be underwritten by Hanover Life.
Aussie chairman John Symond said the low level of life insurance was alarming given the uncertain nature of the economy.
The introduction of Aussie’s insurance products comes on the back of research commissioned by Aussie showing 70 per cent of Australians believe their families would face financial ruin if the respondent died. Only 40 per cent of Australians carry life or disability cover, while almost 50 per cent of Australians think life insurance is too expensive. Twenty-seven per cent of Australians believed life insurance was unnecessary.
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Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
