Risk Product, Company and Regulatory Updates as at 8 August

Company Updates

AIA expands health insurance and announces price changes
AIA Australia is growing its Vitality health insurance brand by launching MyOwn, which offers hospital and extras cover. Eligible, actively engaged members will be offered premium discounts and rewards.

AIA Australia will be offering further discounts for new clients as well as adjusting level premiums and stepped life rates. New members joining the Priority Protection and Priority Protection for Platform Investors products will be affected by the changes. New members with high levels of life cover and term cover will be eligible for a 26 per cent discount. Life cover stepped premiums were decreased on average five to six per cent based on non-smoker policyholders aged 35-65. Crisis recover now includes standalone stepped premiums of four to five per cent for policyholders aged over 35, and nine per cent for age 35 and under. Level premiums will increase for new members.

CBA blames software error for notification failure
The Commonwealth Bank (CBA) claims that a software error in its intelligent deposit machines (IDMs) is the reason behind its failure to notify AUSTRAC of more than 53,000 large cash deposits. The software error was potentially being used in multiple suspected money laundering syndicates. A software update in late 2012 caused a coding error that meant the IDMs did not create threshold transaction reports. The error became apparent in 2015 and AUSTRAC was notified. CBA is reviewing a 580-page statement of claim filed by AUSTRAC in the Federal Court. This matter is subject to court proceedings.

MLC Life launches new platform
MLC Life Insurance has launched LifeView, a digital group insurance platform for superannuation funds. LifeView allows super fund members to lodge and track claims online as well as apply for and increase cover. Administrators and fund trustees can access real-time data and analysis of their fund's claims experience. 

SQM launching low-cost adviser platform
SQM Research is launching a comprehensive investment information platform for financial advisers. The platform covers analysis of over 9,000 managed funds and ASX-listed stocks. Subscriptions for advisers start at $3,000.

ANZ starts wellness program trial
ANZ Wealth has commenced a 90-day trial of its wellness program, with 3,000 participants amongst its OnePath and OneCare customer base. The participants will wear fitness devices or use mobile phone fitness applications to track their steps and receive a gift card for walking 10,000 steps for 10 days.

Regulatory Updates

QBE refunds add-on insurance premiums
QBE Insurance Australia is to refund up to $15.9 million to over 35,000 customers for add-on insurance bought through car dealerships that, according to ASIC, provided little to no benefit. The products were QBE Guaranteed Asset Protection and Consumer Credit Insurance sold between 2011 and 2017.

Group life insurance opt-out to be simplified
The Federal Government has tasked the Australian Prudential Regulation Authority (APRA) with making it simpler for consumers to opt out of automatic disability and life insurance policies provided through superannuation. 

APRA claims data to be made public
APRA will publish the claims data it has collected in a joint project with ASIC in both aggregate and per insurer form. No entry-level data will be published during the initial phase of the project.