Asgard flags hefty insurance premium rises
Westpac-owned investment platform Asgard has moved with insurer AIA Australia to increase insurance premium rates from between 0.7% to 94.6%.
In an e-mail to financial advisers, Asgard said that in conjunction with AIA Australia it had reviewed its insurance offering and that, as a result, premium rates for clients’ Asgard Personal Protection Package policies would change “with an increase in premium rates for most types of insurance cover due to an increase in costs, including claims.
“The change to premium rates means we can continue to provide a valued and sustainable insurance product into the future so that investors can access benefits in the event of a claim,” the e-mail to advisers said.
The e-mail provided the following table detailing the changes.
It said the new premiums would become effective from 1 July and said that Asgard would be sending clients a notice to help them understand the changes and what they mean.
“The notice also provides options to manage their premiums,” it said.
The e-mail said Asgard would be contacting clients from 21 May to let them know that from 1 July, 2025, insurance premium rates will change.
It sid the new premium rates would be effective from 1 July and would be applied to each investor from their next premium due date thereafter.
Yeh sure 95% increase and 52% increase sure tell clients to drop Life Insurance all together.
The industry death spiral continues.
What a sad disaster Life Ins in Australia has become post LIF and FARSEA.
Remember the rubbish from Canberra and Life Co’s that LIF would reduce premiums, that have actually increased 100+ % across the board.
Who is held responsible Canberra & Life Ins Co’s for the BS lies and disaster results ?
Now Life & TPD are luxury insurance items…
You have to wonder if AIA is the only group underwriter Asgard had to choose from.
These group premiums increases are unsustainable for clients.
Perhaps the option is for clients to seek a retail insurance option and arrange insurance outside super.
A few years ago, one group life insurer increased their rates overnight by 85.0%.
I found that I could arrange personal cover outside of super from the same underwriter with the clients paying 45.0% less.
In that situation, the client was happy and everyone had a win.