How Insurers Supported the Industry in 2020

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Disruption to everyone’s normal way of life in 2020 forced many insurers to look at what they could do to soften the blow of the pandemic on their staff, as well as support financial advisers, and their customers.

Some raised adviser commission rates, one waived its premiums, and another pledged half-a-million dollars to support good causes in the community. Here then, are just a few of the ways in which insurers provided practical help when worries about the economy and jobs were at their height…

In October Asteron Life has raised its commission rate by 10 percentage points to 190 percent and topped it up with an additional 10 percentage points – meaning advisers are being offered an upfront commission rate of 200 percent until June 2021.

The firm’s, executive manager Life Distribution, Graham Hill, said the changes help support the business and the industry “…to remain sustainable for the long term”.

During the year AIA New Zealand earmarked $500,000 in grants for good causes via its Vitality Business and Community Grant Initiative.

The company announced details of the scheme in June, inviting financial advisers and community groups to make submissions for one of 10 grants worth up to $50,000.

And Partners Life helped almost 5,000 of its policyholders with Covid-19 premium holidays, leading to more than $5 million in waived premiums.

The insurer has also paid around $500,000 in renewal commissions to financial advisers for policies that were on a premium holiday.