AIA Australia has entered into a five-year agreement with the Bendigo and Adelaide Bank to encourage a greater number of bank customers to take up life insurance.
The new organisations have teamed up to launch and distribute a new direct life insurance product – Bendigo SmartCover – in response to research that 56 per cent of Bendigo customers did not have life cover, while 69 per cent did not have income protection.
“Research showed that underinsurance was an issue for our customers and we needed to do more to encourage them to take out cover and therefore protect their future financial health,” said a Bendigo Wealth chief executive.
“By building a solution that removes some of the barriers to taking out life cover we believe that this is the ideal starting point.’’
AIA Australia general manager, life insurance, Damien Mu said the deal will help the insurer reach more Australians and tap retail channels beyond its traditional distribution reach.
“We recognise that many customers understand their insurance needs but prefer to purchase it directly from a brand that they know already,” Mr Mu said.