Zurich and OnePath introduce simpler, sustainable solutions for protecting Australians’ incomes

27 September 2021


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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Zurich Financial Services Australia is a life insurance, commercial insurance and investments specialist that has been participating in the Australian market since 1920. Since its acquisition of OnePath Life from ANZ in 2019, the company provides life insurance to more than 1.5 million Australian customers under both the Zurich and OnePath Life brands.  Further information about Zurich Financial Services Australia is available at www.zurich.com.au.
 

 

Zurich Insurance Group (Zurich) is a leading multi-line insurer serving people and businesses in more than 200 countries and territories. Founded 150 years ago, Zurich is transforming insurance. In addition to providing insurance protection, Zurich is increasingly offering prevention services such as those that promote wellbeing and enhance climate resilience.

Reflecting its purpose to ‘create a brighter future together’, Zurich aspires to be one of the most responsible and impactful businesses in the world. It is targeting net-zero emissions by 2050 and has the highest-possible ESG rating from MSCI. In 2020, Zurich launched the Zurich Forest project to support reforestation and biodiversity restoration in Brazil.

The Group has about 60,000 employees and is headquartered in Zurich, Switzerland. Zurich Insurance Group Ltd (ZURN), is listed on the SIX Swiss Exchange and has a level I American Depositary Receipt (ZURVY) program, which is traded over-the-counter on OTCQX. Further information is available at www.zurich.com.

Choice & Access to Life Insurance (CALI), Challenges confronting the Australian Life Insurance market  https://www.zurich.com.au/news/media-releases/2020/access-denied-regulatory-disruption-making-it-harder-for-australians-to-obtain-life-insurance.html