CFS reduces insurance premiums
Colonial First State has announced an insurance premium reduction for its superannuation members following the reappointment of AIA as its insurer, saving members $40 million per year.
The premium reduction would take effect from the first quarter of 2022 and covered members in FirstChoice Employer Super, Essential Super, FirstChoice Personal and FirstChoice Wholesale Personal products.
CFS superannuation chief executive, Kelly Power, said: “We’re delighted to reappoint AIA as our provider of insurance following a highly competitive tender process.
“AIA demonstrated significant uplifts in proposed service, technology, underwriting and claims management capabilities when compared with the other proposals we received.
“The reduction in insurance premium for almost 220,000 customers is another example of how CFS continues to share the benefits of our scale with customers. We will continue to review our products and services to ensure our customers receive the best possible benefits at the lowest possible price.”
Recommended for you
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.
