AIA New Zealand Drops Life Cover Rates

Life insurer AIA New Zealand has announced a substantial price change to a major product. From 7 May, it has significantly reduced life insurance costs for most people aged over 30.
May 28, 2012 - PRLog -- The change to premiums makes AIA New Zealand one of the most affordable insurers in the market for life cover. This constitutes a big step towards AIA’s goal to help reduce underinsurance in New Zealand, which has long languished near the bottom of OECD countries for life risk insurance.

AIA New Zealand [ ] CEO Wayne Besant said, “Every indicator we see is that New Zealanders are looking closely at what they’re spending in every area of their lives. Our new life cover rates have been in development for some time, and they’re the result of looking at the needs of New Zealanders and how we stack up in the market. We’re in a position to offer extremely competitive rates because of the strength of the AIA Group, the fifth-largest life insurance company in the world.” AIA New Zealand is one of the highest-rating insurers in New Zealand and Asia Pacific, with a Standard & Poor’s rating of AA-.

By way of example, under the new pricing, for a non-smoking husband and wife, both with $350,000 in life cover and both aged 40, the total monthly premium will now be $53.81, against an industry average of $63.55 (reference: Chatswood Consulting Ltd).

Mr Besant says, “We have made our pricing more competitive in general for people aged over 30. This is when people start to really need affordable life insurance – when they come into their 30s they’re starting families and businesses and acquiring debt. They have lifestyle needs to protect, from a more comprehensive plan through to simple funeral cover, and that protection has to be as simple, relevant and accessible as possible.”

AIA New Zealand reported strong year-end results in early 2012: its share of life and risk new business for the year ending 31 December 2011 was 8.4%, placing it fourth in the market (source: ISI (Investment Savings and Insurance Association)). Comparatively, the company ended 2010 in sixth place with a 6.54% share of new business.

Its persistency figures are also on the rise. AIA New Zealand exceeded its 2011 target of 89% for annualised premium retained, reaching 89.5% compared with 87.2% in 2010.

AIA New Zealand continues to work at a community level on the engagement programme, and has deepened its existing partnership with Maori Television: the company is the naming rights sponsor for the top-rated AIA Marae DIY during the 2012 series.


About AIA New Zealand

AIA New Zealand is the trading name of American International Assurance Company (Bermuda) Limited (AIA) in New Zealand, and a member of the AIA Group.

Since the company arrived in New Zealand in 1981, AIA New Zealand has consistently provided the market with innovative personal and business insurance [ ]products that suit the Kiwi way of life. Today we offer a complete range of risk management products that focus on the needs of our customers.

AIA New Zealand is based in Auckland with regional offices in Wellington, Hamilton and Christchurch. However, through our Insurance consultant network, we reach every corner of the country.

AIA New Zealand is a member of the Investment Savings and Insurance Association (ISI), the Insurance and Savings Ombudsman Scheme (ISO) and the Health Funds Association of New Zealand (HFANZ).

About the AIA Group

AIA Group Limited and its subsidiaries (collectively “the AIA Group” or “the Group”) comprise the largest independent publicly listed pan-Asian life insurance group in the world, with a broad footprint spanning 15 markets in Asia Pacific. The Group traces its roots in the region back more than 90 years and has total assets of US$107.9 billion.

The AIA Group meets the protection, savings and investment needs of individuals by offering a comprehensive suite of products and services covering accident and health insurance, life insurance [ ] and retirement planning. It also provides employee benefits, credit life and pension services to corporate clients. Through an extensive network of more than 260,000 agents and over 21,000 employees across Asia Pacific, AIA serves the holders of over 23 million individual policies and over 10 million participating members of group policies.

The Group has operations in Hong Kong, Thailand, Singapore, China, Malaysia, Korea, the Philippines, Australia, Indonesia, Taiwan, Vietnam, New Zealand, Macau, Brunei and India.

The AIA Group is a market leader in the Asia Pacific region based on life insurance premiums, and holds number one positions in six of its geographical markets. Due to its historical roots in Asia, the AIA Group has built a network of mainly wholly-owned businesses operating as branches or subsidiaries. Only in India, where legislation restricts foreign ownership of insurance companies to 26%, is the Group’s main operating unit a joint venture.

AIA Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong Limited under the stock code ‘1299’.
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