Fidelity Life is increasing premiums for some of its income protection covers, key person cover and new level trauma (including trauma multi) covers.
In an email to financial advisers the firm says the new premiums will start from 1 August 2020 and will include removing or reducing sales discounts or increasing underlying insurance rates.
Among the changes is a removal of the 10% sales discount for existing personal income protection covers and a 5% increase in underlying rates for personal income protection covers for the benefit periods ‘to age 65’ and ‘to age 70’.
“We’re well-capitalised and in good financial shape,” says the insurer. “The increases are part of our commitment to sustainability.
“Sustainability is important because it allows us to keep innovating and investing in our transformation and, at the same time, keep delivering on our promises to customers at claim time over the long term.”
Fidelity Life says that at industry level, the sustainability of income protection and trauma products is under pressure due to rising claims volumes, and that “…unfortunately sometimes insurers need to pass on cost increases to customers”.
The company told advisers by email that it’s important to note “…we’ve considered the economic impacts of Covid-19 on customers as part of our decision to increase premiums”.
Advisers can find full details of the changes on Fidelity Life’s Adviser Hub.