Risk Product, Company and Regulatory Updates as at 25 March 2020
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Product Updates
AIA Australia replaces myOwn Health brand
AIA Health Insurance is to replace AIA Australia’s myOwn Health, giving customers access to AIA Vitality. The new product includes seven hospital products and four extras products, with benefits including a 100 per cent refund on hospital excess for eligible hospital admissions and a 10 per cent extra back on non-dental extras via AIA Vitality Boost. The offering is aimed at the younger generations. myOwn will continue to service existing customers, but new products are closed to business.
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Coronavirus Updates
A brief overview of the latest in COVID-19 impacts
Superannuation fund balances in Australia have plummeted with many funds losing 10-14 per cent with equity market plunges. Australia’s superannuation system has $2.9 trillion in funds under management, with a 13 per cent drop being $290 billion, according to Rainmaker data. Stock markets fell even further, around 20 per cent.
Industry funds that have a large proportion of hospitality workers as members are the hardest hit, with many of their (often younger) members now unemployed. Industry funds serving the hospitality sector include Hostplus, Club Plus and Rest. Income protection insurance does not cover this type of crisis, however, the government has allowed early release of funds from super. The move has been criticised as damaging to superannuation balances, where citizens must use up precious superannuation resources, depleting often already small balances, instead of the government stepping in.
Rice Warner is predicting the pandemic will be a catalyst for mergers between superannuation funds, despite now being a more difficult time to negotiate a joint fund.
The Australian Prudential Regulation Authority (APRA) has announced it is suspending the data collection system temporarily to allow financial institutions to focus on their staff and customers during the coronavirus pandemic. The hold is for at least six months and delays all APRA Connect live updates for this timeframe. APRA has also announced they are revising their agenda to allow for companies to put their focus and resources elsewhere.
For related COVID-19 announcements see APRA's news and publications on COVID-19.
