May 25, 2017

May 25, 2017 | Risk Pulse

What does the future of Trauma insurance look like

“Change is the only constant”, or so the saying goes, and the life insurance industry is no exception. Just as the typical client of today is changing, becoming more “diverse, demanding and connected” , so does the approach that we take to the range and flexibility of cover we provide.

The world is already moving towards this new insurance future. Major life insurance markets such as South Africa, New Zealand and the USA have all embraced a new generation life insurance product – severity-based cover – recognising the inherent value and increased certainty that a severity-based offering provides to both customers and advisers alike.

One of the biggest drawcards of the severity-based approach is that it offers a more flexible style of cover. There are more mechanisms built in to ensure clients can claim on a broader range of conditions and claim  multiple times if the severity of the illness progresses, or they suffer another medical condition.

The policy can also pay at lower thresholds because, unlike traditional “all or nothing” policies, the amount the client receives at claim is aligned to the severity of their ailment. Think of it like playing darts. Traditional claims are paid if your client hits the bullseye, which means they get paid 100% every time, but if they fall  outside, they miss out. With  severity-based cover, early stage conditions are still  paid a portion of the total cover, with the balance of cover preserved for future claims.   This means even when clients  don’t  hit the bullseye, as long as they land on the board, they will still  receive  something to meet the financial impact of illness.

And while the amount of cover reduces after each claim, the line of credit structure ensures that a portion still remains available for future claims. This means clients get more payments from their policy if a health event they already claimed for worsens, or if they experience a new condition.

This approach is becoming increasingly valuable to clients as Australians are living longer and living better. With rapid advancements in medical technology, conditions such as cancer and heart illness are not the death sentence they were 20 years ago. Diagnoses are happening sooner and sooner, and rather than claiming a one-off lump sum for a severe condition, clients are being medically managed through their illnesses. Many now approach trauma as a ‘journey’ and are more likely to require smaller sums throughout their life to help manage their illness and recovery.

In this environment, paying a lump sum for less severe trauma or disablement cases only contributes to greater unaffordability of cover and unsustainability within the industry. And while the needs of customers have changed dramatically over the past 20 years, we need to remember that the certainty and support they require at such a difficult time in their lives has not. The onus is now on life insurers to evolve to ensure we can continue to offer a sustainable policy that is there for them over the course of their life, no matter what that life looks like.

Zurich is proud to be the only life insurer to bring this innovative style of cover to market, with Zurich Active – cover that is always in effect, plays an active role in your clients’ finances when they need it most. To find out more, contact your Zurich BDM o 1800 500 655.  

[1] De Wit, R, Nielsen Consumer 360: the consumer is changing and connected, i-Scoop, 2016.  



May 25, 2017

The biggest range in market, exclusive tips from an Adviser of the Year judge, and claims that give your clients peace of mind

Life is made up of an infinite amount of choices. Most decisions, such as what you’ll eat for lunch today, are small and only slightly impactful, but it’s the big decisions—the ones that can change your life forever—that can be tough to make. This is precisely how many Australians feel about their financial future.

May 25, 2017

Ten things you need to know about Zurich’s Life Risk Update

This month Zurich announced a major revamp of its life insurance offering – our first update for 2017. Here’s an outline of ten things you need to know about the changes we’ve made:

May 25, 2017

What judges look for in an Adviser and Practice of the Year

The AFA Adviser of the Year Award is now in its 14th year, recently being joined by the Practice of the Year Award also. As a proud foundation partner, Zurich believes strongly in the value of quality advice and the professionals that provide it.

May 25, 2017

Claim with confidence at Zurich

The handling of life insurance claims has been in the spotlight in recent years, and amongst the noise and valid industry scrutiny, it’s understandable that advisers want to make sure that their clients are protected with the cover that is right for them, and by a company that will be there for them – no matter what.

May 25, 2017

ZLife app: advisers’ one-stop client management shop

Zurich’s new ZLife app is the one-stop shop for advisers on the go, offering easy, quick, secure access to clients’ life insurance information.