Zurich makes changes to risk products



In order to help advisers better position themselves for the changes of the Life Insurance Framework (LIF), Zurich has made a number of changes to its retail insurance offering.

With the intention to increase the simplicity, affordability and sustainability of its life insurance range, Zurich has made changes to its pricing structures, reduced premium rates for new term and TPD business, and launched a new range of income protection products.

“The changes we have made reflect a move towards simplifying our product range, pricing and execution to benefit advisers and their customers. We feel this sentiment has been lost in much of the recent industry dialogue,” Zurich life and investments general manager Philip Kewin said.

“With the launch of our new income protector range we hope to break this cycle with a design that focuses more on the core benefits of income protection and pricing which is more in line with the latest claims trends.

“We expect this will drive much more stability and predictability in premiums, which is vitally important to both advisers and customers,” he said.

Zurich has also looked to further add stability by providing a guaranteed two-year rate for all new wealth protection policies written throughout 2016.

“We are effectively keeping the underlying base rates unchanged for the first two years of the policy, to give advisers and customers added confidence and certainty about the cost of cover,” Mr Kewin said.

From 21 December Zurich will also replace its range of bundling and loyalty discounts, in favour of a simpler approach that will enable advisers to access the most competitive rates all the time, for both packaged and standalone cover across all products.

“As well as being easier to understand, this new proposition allows us to deliver increased value for customers, and is reflected in term and TPD new business rates that are six per cent lower than our current rates for lives under age 55,” he said.

“While this is only the first step, it’s a very important one, as we are determined to see an industry response to LIF that goes beyond adviser remuneration and delivers genuine benefits to advisers and customers.”

Zurich said that a new PDS reflecting the changes will be available in early December.

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