The joint application by OnePath Life Limited (OnePath Life) and Zurich Australia Limited (Zurich) to the Federal Court of Australia (the Court), to transfer the life insurance business of OnePath Life to Zurich by way of a scheme (the Scheme) was confirmed on 6 July 2022. The effective date of the transfer will be 1 August 2022.
What does this mean for advisers and your clients?
While this is an important milestone in bringing together the life insurance businesses of the Zurich Group in Australia, there is no action required by advisers or your clients.
The Scheme transfers OnePath Life’s assets and liabilities, including all life insurance policies issued by OnePath Life, to Zurich on the effective date (being 1 August 2022). OnePath Life will, however, retain assets to meet regulatory capital requirements.
Existing OnePath Life policies will automatically transfer to Zurich, and insurance cover under OnePath Life policies will not change as a consequence of the transfer.
The Scheme will not affect the following:
- The policy terms and conditions of your clients’ policies, except that Zurich will replace OnePath Life as the insurer and OnePath Life issued policies will become referable to a Zurich statutory fund
- The brand that appears on your clients’ policy. If they hold a ‘OnePath’ branded policy before the effective date, their policy will continue to be branded ‘OnePath’ after the effective date
- Any income payments, claims in progress, active requests, applications, or complaints already submitted
- How your clients are currently serviced, or the way that you do business with us.
Note, the OnePath brand and OnePath products will remain in market, following the effective date.
For further details we recommend you access our Adviser FAQ document and visit either the OnePath or Zurich website for more information, and to access the Scheme documents.
Communication to clients
In May and early June 2022, we sent OnePath Life policy owners a notification letter or email, along with the Scheme Summary, to inform them of the proposed transfer. Note, Zurich policy owners did not receive direct notification of the Scheme via email or mail.
Scheme documents
The following documents relating to the Scheme are available for Advisers and clients online at the OnePath and Zurich websites:
- Scheme
- Scheme Summary
- Actuarial report on the Scheme prepared jointly by the Appointed Actuary of OnePath Life and the Appointed Actuary of Zurich
- Independent Actuarial Report on the Scheme
- Customer notification.
We’re here to help
If you have any further questions about the Scheme, please call your Business Development Manager who will be happy to help.