Integrity Life takes long-term outlook with launch of lifetime discount offer


Chris Powell

Australian life insurer, Integrity Life (Integrity) this week launched a lifetime discount offer, a move that it says strongly aligns with the best interests of advisers and consumers. Integrity has announced an 8% discount for the lifetime of a policy across its lump sum products (Life, Critical Illness and TPD). A move it says is designed to ensure sustainable pricing for its life insurance products.

Commenting on the offer, Integrity Life MD Chris Powell said, “The financial services Royal Commission highlighted that the customer’s interests must come first, and products must be appropriate to their needs. This simple principle is something that businesses such as ours are seeking to address, and to play a valuable role in the evolution of our industry towards this mindset.

He continued, “As an insurer with a completely blank canvas, we are in the fortunate position of being able to play a role in building a more sustainable life insurance industry. When thinking about the best way to price our products, we made the deliberate decision to ensure they are all priced individually and sustainably. We believe this transparency in pricing will help advisers build trust and loyalty with their clients.”

The decision to only provide discounts on lump sum products is aligned with regulator and industry concerns about the sustainability of Income Protection (IP).

Chris added, “Current discounts, particularly upfront short-term discounts on IP, are unsustainable and are contributing to ongoing losses among insurers. Because of the importance of IP as a lead component of ‘packages’ it is always tempting to price it as a ‘loss leader’. However, pricing in this way does not align with Integrity’s philosophy of promoting on-going sustainable pricing, nor does it benefit the insurer, the adviser or the customer in the long run.”

Integrity’s offer of 8% off is on the standard premium each year for the life of the policy. The offer is valid for new business quoted and submitted from 15 September 2019 to 31 December 2019. Applications must be inclusive of two or more different covers, with the discount applied to lump sum covers (Life, Critical Illness or TPD) only.

Chris concluded, “Our product team asked themselves, ‘how would you price life insurance for today?’ and worked closely with advisers to develop this new proposition. We trust that our adviser partners will be excited by this new proposition and the broader changes it represents for the life insurance industry.”

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