Allianz to shake up Australian life insurance status quo
13 September, 2007
Allianz Australia, part of one of the world’s largest insurers, today launched Allianz Life Plan, an online product designed to make life insurance less complex and more affordable for Australians.
“We know six in 10 people with dependent children simply do not have enough life insurance to look after their families if something happened to them. We also know that superannuation is only providing people with 20 per cent of the life insurance they need,” said Jonathan Poole, Chief Executive Officer of Allianz Australia Life Insurance.
“Survey after survey has established this, and yet life insurance remains complex, hard to obtain and too expensive.
“The industry has perpetuated these problems with high commissions and confusing policy wording.
“What most people don’t know is that when you buy insurance from an adviser generally all of your first year’s premium payment goes to the adviser as commission. It’s no wonder Australians find life insurance expensive.
“What we’ve done today is to make it possible for people to get the life cover they need in 12 minutes and at prices 20 to 30 per cent less than they are paying today,” he said.
It will take just 12 minutes to buy the new Allianz life insurance cover online or over the phone, compared to a typical purchase through an insurance adviser which can take up to eight weeks.
It will also be the first time Australians are able to access:
- A high sum insured (up to $1.25 million life cover) without seeing an insurance adviser
- Critical illness cover (also known as trauma) online
- ‘Permanently unable to work cover’ (also knows as total and permanent disablement) online
- Fully underwritten on-the-spot cover
- Immediately issued policy documents – emailed or available via download
It is expected Allianz Life Plan will help address Australia’s chronic underinsurance problem.
Other features of the Allianz product include:
- No medicals or blood tests to obtain cover
- A plain English policy document (product disclosure statement or PDS) of seven pages (compared with the industry average of 80 plus pages)
- Cost effective cover: on average, over the life of a policy, cover will be 35 per cent less than other online providers, and 20 to 25 per cent less than products available through insurance advisers.
Allianz Life Plan is available online (www.allianz.com.au
) or over the phone (13 1000).
Notes to Editors
1. About life insurance in Australia
A 2005 Investment and Financial Services Association report found six in 10 people with dependant children do not have enough life insurance to look after loved ones for more than one year if they were to pass away. The report also found cover held by those with life insurance through their superannuation represents 20 per cent of the cover needed.
See also other sources: Securing Australians’ Financial Wellbeing, Investment and Financial Services Association Headland Statement, 2007.
Allianz definition of a heart attack:
“Definite diagnosis of a heart attack (myocardial infarction) as a result of coronary artery disease, resulting in the death of a portion of the heart muscle. This event must require hospitalisation and investigation in a coronary care or similar unit, within 72 hours of the heart attack”
Competitor’s definition of a heart attack:
“The death of part of the heart muscle (myocardium) as a result of inadequate blood supply. The diagnosis must be based on either:
The following medical evidence:
Any other medical evidence satisfactory to us which demonstrates that myocardial damage has occurred to at least the same degree of severity as would be evidenced by the medical evidence required under the first bullet point”*
3. About Allianz Australia
- Elevation of cardiac enzyme CK-MB or
- Elevation in levels of Troponin I greater than 2.0 mcg/L or Troponin T greater than 0.6 mcg/L or their equivalent and
- Confirmatory new electrocardiogram (ECG) changes or
- Medical evidence satisfactory to us that the heart attack reduced the Left Ventricular Ejection Fraction to below 50% when measured at least six weeks after the heart attack or
The Allianz Australia Group operates in Australia and New Zealand. It is one of Australia’s largest general insurers, a leading private workers’ compensation insurer, and more recently, a life insurer.
Allianz Australia delivers a wide range of personal, commercial and corporate insurance products and services. AAL is proud to be of service to more than 2 million policy holders and over 50% of Australia’s top 50% BRW listed companies have some form of insurance cover with the group.
Allianz Australia offers a wide range of insurance products and services including car insurance
, home insurance
and Life insurance
Allianz Australia has approximately 3000 staff. In 2006 the company achieved a gross written premium exceeding AU$2.4 billion and investment assets of approximately AU$5.5 billion. Allianz Australia Group is a wholly owned subsidiary of the worldwide Allianz Group, one of the world’s largest insurers and investment managers.
Allianz Australia Life Insurance Limited (ABN 27 076 033 782) AFSL 296559 is the issuer of the Allianz Life Plan. We do not provide advice about the policy based on any consideration of your objectives, financial situation and needs. To decide if it is right for you please read the PDS.
Allianz Australia Ltd
Ph. 0416 088 414
Ph. 0403 333 904