AIA has announced it will launch its new AIA Living product range with AIA Vitality on 5 August.
AIA Chief Product and Vitality Officer, Len Elikhis, says the new product suite has been designed to deliver outstanding customer value, especially when combined with AIA Vitality.
“AIA Living offers customers market leading protection, a competitive pricing structure including a multi-benefit discount, and a simplified commission structure that supports good advice outcomes,” Elikhis said.
“Advisers will be able to quote and apply for AIA Living with AIA Vitality using our new AIAHub digital quoting and application solution. AIAHub will simplify and enhance the application experience – enabling Advisers to instantly present underwriting terms and issue cover for some clients,” he added.
The new product range offers customers access to Life, Trauma, Income Protection, Total Permanent Disablement, and Health cover.
“Over the past few months, we have made over 100 enhancements to align our existing AIA and Sovereign products and these enhanced product ranges form the basis of our new AIA Living product,” said Elikhis.
The AIA Living pricing structure comprises:
- Competitive base rates across the entire product range
- A tiered Multi-Benefit Discount (10%, 12.5%, and 15%)
- An AIA Vitality discount starting at 10%
Elikhis added that most existing AIA and Sovereign customers will be able to access AIA Living without any underwriting.
“In addition, we will give consideration to a customer’s existing policies in the calculation of the Multi-Benefit Discount on any new AIA Living business,” he said.
Regarding commissions, the insurer stated that AIA Living will attract a new commission structure, which:
- Supports good customer outcomes
- Offers Advisers fair and competitive remuneration
- Is simple to understand
- Addresses points raised by the FMA in its review of the life insurance industry
“The commission structure is straightforward to understand – we offer a flat initial commission rate across all risk products and a choice of a “Standard” option (higher initial commission, lower renewals) or “Pendulum” option (lower initial commission, higher renewals),” Elikhis noted.
“We have also taken the view that volume and persistency related commission bonuses drive unnecessary complexity and risk distracting attention away from the important work that advisers perform for their clients.”
The insurer’s health and wellbeing program, AIA Vitality, was announced in February this year following its acquisition of Sovereign (see: AIA Releases Rebrand Details…).
It has since appointed a Vitality Coach and two Vitality ambassadors.
AIA Hub is an end-to-end digital application solution: quoting, medical pre-assessment, underwriting, and pipeline visibility.
The insurer stated it is designed to make it easier for advisers to do business with AIA and will enable advisers to progress their quote into an online application with an integrated underwriting engine designed to enhance the application experience and reduce paperwork.
“We are excited about our new proposition for our customer and advisers,” said Elikhis.