Risk Product and Company Updates as of 23 March 2016

Company News

AIA's Vitality Reduces Lapse Rates by 40%
AIA Australia's lapse rates have dropped by 40 per cent amongst those consumers who are taking part in the two-year-old Vitality program. Around 12,000 people have signed up to the health program.

ANZ Restructures Wealth Management, Insurance on Top
ANZ has made adjustments to its wealth management business with insurance now being pushed to the front using advisory networks, branches, and the web. A new unit, Australia Wealth, now incorporates insurance, superannuation, and investment activities, run by Alexis George. 

TAL Upping Claims and Rehab Staff Education, Kicks Off Roadshow
TAL has partnered up with the Personal Injury Education Foundation (PIEF) to increase the education and professional development of claims and rehabilitation staff. The training organisation is not-for-profit, and deals with accident compensation regulators, insurers, and claims management organisations. Every staff member will gain at least a Certificate IV in Personal Injury Management, through to a Master of Personal Injury Management for more senior staff. Returning people to work and disability management are areas of focus for TAL. 

TAL has also recently launched its benefits program, and is on the road with Health Sense: Fit for Life roadshow. According to TAL, over 70 per cent of all new policies have received a discount via the program. 

Gen Re Melbourne Office Closure
Berkshire Hathaway Insurance-owned Gen Re is to close its Melbourne and three United States-based offices as part of a global restructure. The Melbourne office is being merged with the Sydney office. 


Product Updates

CommInsure Releases New Heart Attack and Severe Rheumatoid Arthritis Definitions
As of 10 March 2016, CommInsure has released new medical definitions for Heart Attack and Severe Rheumatoid Arthritis. The May 2014 product disclosure statement will be updated, and apply to all claim events from May 2014 onwards. This comes on the back of major problems identified at CommInsure regarding the denial of claims based on outdated definitions. 

Regulatory Updates

ASIC Consultation Paper on Automated Advice Guidance
ASIC has released a consultation paper and draft regulatory guide on regulating digital automated advice on products. ASIC is very supportive of automated advice platforms and is encouraging innovation in this area. The guidance gives providers some help regarding the process, from gaining an AFS licence to providing the advice, including algorithm testing.

Download the consultation paper from ASIC

Read our article on regulatory hurdles in automated advice

Read our article on automated advice.