Zurich and OnePath Life are making it simpler for Australians to protect their most important asset – their livelihood – with two new retail income protection products that have been designed for clarity, affordability and certainty.

Launching on 27 September 2021, Zurich Income Safeguard and OnePath Life’s Income Secure Protection, make income protection simpler to understand and afford, providing financial protection when it is needed most and supporting each claimant’s return to work. The products are underpinned by alignment to the Australian Prudential Regulation Authority (APRA) measures for ensuring the long-term sustainability of this vital insurance category.

Both new products offer a 70 per cent monthly insured benefit, to support customers financially throughout the entire period.

The products are complemented by comprehensive award-winning rehabilitation services, so we might support claimants in a holistic and personalised manner on their wellbeing journey, and where possible, their return to work.

Zurich engaged financial advisers and customers in developing the new solutions, to satisfy today’s community expectations around life insurance whilst correctly-pricing products for a sustainable industry. Some of the core principles which were considered in developing the products included:

• Meeting Australians’ expectations around the value of life insurance and its role as a community good, which helps people avoid hardship and provides a mid-term support to enable people to reset a path to return to work or restructure their finances1.
• A recognition of the health and wellbeing benefits of good work.
• A recognition that returning to health is a unique journey for every claimant, and offering rehabilitation services to support each claimant provides a more holistic customer offering.
• Removal of product complexity, to improve understanding and administration.

Jacqui Lennon, Head of Customer and Digital, Zurich Life & Investments, said: “Income protection is the most claimed upon life insurance product in the market, supporting thousands of Australians and their families during what is often the hardest period of their working lives – losing their income due to illness or injury. Last year, we paid more than 9,000 income protection claims, or $300 million, to holders of retail advised policies. Our new suite of income protection solutions will help ensure this vital market remains robust so that all Australians continue to have the opportunity to protect their livelihoods.

“We want to help our customers achieve the best quality of life possible after an illness or injury, which includes supporting their unique return to work journey when they are ready – recognising that work and being fit for work is an enabler to positive mental and physical wellbeing.”

From October 1, APRA measures will require income protection products to provide financial protection in a more sustainable framework, which includes new rules around product benefits, contract terms and replacement ratios among other key features.

Responding to this, Zurich and OnePath Life have also removed the complexity around the waiting period requirements, offering a simple definition for all insurable occupations. Additional enhancements have been introduced to make cover more accessible and affordable.

Kieran Forde, Chief Distribution Officer, Zurich Life & Investments said, “The requirements provided an opportunity for us to start afresh in designing solutions that get to the heart of what Australians need from their income protection policy.

“By consulting with financial advisers and consumers throughout the design process, we sought to improve simplicity, providing solutions that are clear to understand and easy to administer. A fundamental principle behind our new solutions is they meet community expectations in offering certainty and quality, whilst also balancing the need for value and simplicity.”

For more information about the policies, click here.

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