Premium changes

We’re continually focused on bringing much-needed innovation to our industry. You’ve seen us recently bring a raft of new initiatives to market, and we’re constantly looking at ways to do more with how we assess underwriting risk.

Today, we’re pleased to bring you another example of this.

What's new?  

Effective from today, 1-April 2025, we’re rolling out a new pricing strategy to market, where we’re re-rating the premiums for customers in the Adviser channel. The key aspects are:

A re-shaping of the pricing curve to reflect a lower risk due to the underwriting selection effect.
As we’ve previously communicated, a 5% increase to all lump sum premiums and disability premiums (where the benefit period is 2 or 5 years). And a 7.5% increase to all disability covers with a benefit period of ‘to age 65’ or ‘to age 70’ due to claims experience.
An adjustment of the rates for all customers, that we believe will help us better manage risk and continue to provide competitive and fair pricing for all customers.

Please reach out to your Business Manager if you have any questions.

Adviser FAQs.

When are the changes to pricing effective?

The changes to our pricing are effective from 1-April 2025.
Can customers access the new pricing rates?

Yes. Customers who apply and are underwritten from 1-April 2025 can access the new pricing.
Can a customer cancel their policy and reapply to get a cheaper price?

If an adviser determines (as part of an advice service) that the customer should re-enter (meaning to cancel and re-apply), enabling them to access the new rates, they can do so subject to the usual underwriting requirements.
What happens to pipeline business?

Customers in the pipeline as at 1-April 2025 will have their premium updated to the new rates before the policy is issued.
How does this impact adviser commission?

The usual commission settings apply.
We would treat re-entry as replacement business and acquisition commission will only be paid on increases to the commissionable premium. The usual clawback periods will apply to any cancelled policies.
How are we informing customers?

The new premiums will be reflected in affected customers’ renewal letters for policies renewing from 1-April 2025 – these are being sent as usual, 6-weeks in advance, from 18-February 2025.

Customers can access our new pricing through any quotes generated by advisers, through Apollo. When an illustration is generated in Apollo, a customer will see the pricing projections accurately reflected. And we’ve also taken the opportunity to provide the customer with an explanation of the different factors that influence the price of their cover over time.

Want to find out more? 

Talk to your Business Manager.