In a move bound to attract attention from advisers AIA has launched three new digital-only Starter Plans aimed at getting more Kiwis on the 'protection ladder'
The three new bundled plans - AIA Healthy Starter, AIA Starter Life and AIA Starter Life Plus - are designed for New Zealanders who are looking for basic, affordable and rewarding insurance, offered via a seamless digital solution.
Chief Partnership Officer Sam Tremethick told Good Returns TV the move is not a threat to advisers, rather it is complementary.
He believes over time when these policyholders need more insurance they will be referred to advisers. Also, the policies are simple and when there are areas where advice is needed applicants will be referred to advisers.
He says AIA have a pool of advisers it will refer people too.
AIA chief executive Nick Stanhope says the traditional new business market is in decline since its peak in 2017.
"The 2021 FSC NZ report showed an $80 million annual premium income reduction in new business since then, indicating that around 50,000 more Kiwis are now without sufficient insurance cover."
"The AIA Starter Plans are designed to help New Zealanders begin their insurance journey by offering simple and affordable insurance cover.
"By offering these three new digital-only, non-advice propositions, we believe AIA can help more Kiwis get better protected. As these customers’ needs change, we will offer them the option of seeing an adviser. Together, we can help address the nation’s significant protection gap.”
Tremethick says the new offering is more about getting people insured rather than profit as the average premium a policyholder will pay is $300 a year.
Because of this low number it is a digital-only offering.
Stanhope believes the new AIA Starter Plans complement the full advice channel, by offering those looking for basic and affordable options with a first step into insurance.
“As the needs of our AIA Starter plan customers’ change and become more complex over time, we expect to transition these customers to trusted advisers who can provide specialised cover and tailored advice.”
Stanhope also says AIA will refer clients to advisers when an advice conversation is required as part of the purchasing process.
"Where Plans are not suitable or a customer is ineligible for cover (they have to be new customers), we will pass these customers on to advisers to better understand their individual needs, and explore alternative insurance solutions tailored to their situation.”
AIA's research says the plans will be "an attractive and rewarding offering for young professionals, tradies and those starting out with families."
“Our research shows these groups historically do not engage with traditional insurance channels. We know costs of living are rising, but believe these consumers have sufficient discretionary income available each month that they could put towards these more affordable plans offering basic life, rent or mortgage protection with an optional add-on of Specialist and Diagnostic Testing for medical conditions.”
To ensure there is something in the plans for new customers Vitality Starter has been added.
“The inclusion of AIA Vitality Starter is the ‘jewel in the crown’ of our AIA Starter Plans,” Stanhope says. “Supporting better health and wellbeing with weekly Active Rewards, the starter version of the AIA Vitality programme also includes highly sought-after benefits such as the Apple Watch benefit and a Les Mills Gym membership discount, which appeal to our target market.
For more on this new plans watch GRTV.
