Insurance strategic partnership formed to address Australia’s retirement challenge
David Kane
As Australia prepares for a retirement wave that will see more than 2.8 million people retire over the next decade, two of the world’s leading insurers, AIA Australia and Allianz Australia Life Insurance (Allianz Retire+), have today announced a strategic partnership bringing together health, wellbeing and guaranteed lifetime income solutions to help Australians better prepare for and live well in retirement.
The strategic partnership brings together more than two centuries of experience and combines the strengths of AIA Australia’s expertise in health and wellbeing, behavioural science, member engagement, and financial wellbeing, with Allianz Retire+’s expertise in guaranteed lifetime income, including its Allianz Guaranteed Income for Life (AGILE) solution.
The two insurers will seek to work with superannuation funds, wealth platforms, financial advisers and retirement service providers to keep Australians healthier during their working lives and engage earlier with retirement planning, and to deliver a secure retirement income alongside improved health and wellbeing throughout later life.
Under the strategic partnership, AIA will bring its well-recognised behavioural science-backed health and wellbeing propositions, including AIA Vitality, while Allianz Retire+ will provide retirement income solutions through its highly regarded AGILE solution.
AIA Vitality is a science-backed health and wellbeing incentive program that rewards people for making healthier choices and staying engaged with their health.
Damien Mu, CEO of AIA Australia, said:“At AIA, we are focused on helping people live healthier, longer, better lives. We know that people are currently living longer, but they’re not necessarily spending their later years in good health; and financial security plays a big part in someone’s overall wellbeing. This is why we’re partnering: we bring our expertise in lifelong engagement and wellbeing to the table, to combine with the Allianz Retire+ market-leading retirement income guarantee.
“We’re excited about the opportunity for this partnership to provide the two-fold solution to the retirement puzzle: lifetime income security alongside a healthy and comfortable life.”
David Kane, CEO of Allianz Retire+, said: “The strategic partnership comes at an important point for Australia’s retirement system, as government and regulators increasingly call for solutions that give Australians greater confidence and certainty in retirement.
“Allianz Retire+ is experiencing positive momentum as advisers, superannuation funds and retirees increasingly recognise the value of retirement income solutions, including Allianz Guaranteed Income for Life (AGILE). This reflects a broader shift in how Australians are preparing for retirement and managing longevity risk.
“This strategic partnership with AIA Australia builds on that momentum and strengthens our ability to meet rising demand across the market. By bringing together Allianz Retire+’s retirement income expertise and AIA Australia’s strengths in health, wellbeing and customer engagement, we can help more Australians retire with confidence and achieve better retirement outcomes.”
AIA Australia and Allianz Retire+ will create a connected experience that helps Australians navigate life’s key moments through a simple framework:
Engage → Protect → Recover → Prepare → Retire
AIA will use its behavioural science-backed propositions to incentivise people to be healthy throughout their lives, and to engage in their retirement planning early
Allianz Retire+’s retirement solution Allianz Guaranteed Income for Life (AGILE) offering allows people to start locking in their retirement income from age 50
AIA Vitality in Retirement will address issues around remaining active, healthy and socially connected once someone has stopped working full-time
AGILE will provide guaranteed income for the remainder of a person’s life.
The announcement comes at a pivotal time for Australia’s retirement system. While the nation’s superannuation framework has been highly successful in helping Australians accumulate retirement savings, many continue to struggle with the challenge of turning those savings into a sustainable retirement income. Research from the Super Members Council found that 75% of pre-retirees find the range of super retirement products confusing, and that retirement system complexity could cost a typical retiree up to $136,000 over the course of retirement.
The strategic partnership responds to a growing recognition that retirement is about far more than money, and people need to start long-term planning earlier in life. Health, wellbeing, purpose, engagement, financial confidence and sustainable income all play a critical role in determining a good retirement.
