Integrity Life is offering an 8% discount for the lifetime of a policy across its lump sum products (life, critical illness, and TPD) in a move the Australian life insurer said is designed to ensure sustainable pricing for its life insurance products.
The offer is valid for new business quoted and submitted from Sept. 15 to Dec. 31, 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.
Integrity Life said the decision to provide discounts on lump-sum products is aligned with regulator and industry concerns about the sustainability of income protection (IP).
“Current discounts, particularly upfront short-term discounts on IP, are unsustainable and are contributing to ongoing losses among insurers,” said Chris Powell, Integrity Life managing director. “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 ongoing sustainable pricing, nor does it benefit the insurer, the adviser or the customer in the long run.”