IAG exits life insurance business – report

IAG exits life insurance business – report | Insurance Business

IAG exits life insurance business – report

Insurance gaint IAG is reportedly getting out of life insurance, as it shifts 50,000 of its policyholders across all brands to life insurer Aon.

A report from Radio New Zealand detailed IAG’s letter to to its customers, which said the decision was difficult but customers were “in safe hands” with Aon.

“At IAG, we review our products from time to time to ensure we are focused on being New Zealand’s best insurer for house, contents and motor insurance,” IAG reportedly said. “As part of this review, we have made the difficult decision to no longer offer life insurance."

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The publication quoted IAG as saying life insurance was only a small part of its business, and customers would be better supported by Aon. The insurer also offered assurances its policies would not change and would continue to be underwritten by Sovereign, which is owned by the international insurance group AIA.

The move is one of many made recently by IAG, owner of State and AMI, to reshape its business. In May, AMI announced plans to close of some of its stores across the country. In April, IAG announced it will roll out a risk-based pricing model to all its brands to reflect the risk of natural disasters and severe weather events in some parts of New Zealand.