CommInsure policyholders to be notified of transfer to AIA
CommInsure Life’s policyholders will be transferred to AIA Australia by way of a scheme under Part 9 of the Life Insurance Act, subject to the Federal Court of Australia.
In an announcement, AIA said this would allow it to finalise its acquisition of CommonInsure Life from the Commonwealth Bank of Australia.
It noted that the scheme would not affect any policy terms and conditions or how policyholders and customers did business with their insurer.
Policyholders would receive a letter from AIA Australia and CommInsure Life informing them of the intended transfer and would receive a scheme overview and details of the transfer.
The acquisition of the life insurance business included The Colonial Mutual Life Assurance Society Limited (CMLA). CMLA also included other brands such as Colonial and Commonwealth Financial Services. AIA said all life insurance products and associated policies and services issued under those brands would transfer to AIA.
The transfer would be heard by the Federal Court of Australia on 8 March, 2021, and if confirmed the court would determine the exact time and date of the transfer which parties had proposed would be 12.01am on 1 April, 2021.
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.
