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[GRTV] Clear value proposition is key

A lack of claims as a result of Covid-19 could be a sign of under-insurance in the New Zealand market, says AIA’s chief partnership insurance officer Sam Tremethick.

Friday, June 12th 2020, 3:45PM 1 Comment

He told Good Returns TV that the insurer had received two death claims as a direct result of Covid-19 and it had been humbling to be able to help those families.

“I think, interestingly though, if we've got the 30% market share, and we just do the numbers, that may be six of the 22 victims that have been insured.

“I'd be fearful of using it as an example, but I think it highlights the need, and the under insurance here in New Zealand.

“When I talk about the under-insurance challenge that we have here, I think we've also created that problem, in the sense that our products are very feature-rich and very expensive. So, how do we make sure that we're able to offer products to a broader part of the community?”

AIA has recently introduced a new commission offer which it said was designed to help adviser businesses who were struggling with cash flow due to the pandemic.

Tremethick said AIA had experienced a 30% drop in new business because of Covid-19. Some advisers had suffered significantly, he said, and others outperformed during that time.

“That's really important for us, in the sense of, does it go all the way to make up for the shortfalls, and loss in revenue? No, but it supports those businesses.

“There is more than enough opportunity out there. And whilst things are different, and the world's different, the need for insurance is ever present.”

The pandemic had proved how important it was for advisers to have a clear value proposition, he said.  AIA was now getting back to pre-Covid-19 levels of business overall, he said.

 

TO HEAR THE FULL INTERVIEW - Listen to the Podcast here.

Full transcript of the interview available here.

Tags: AIA GRTV

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Comments from our readers

On 18 June 2020 at 9:04 am Old MacDonald said:
Agree that there is definitely an under insurance issue in NZ. Probably Covid stats not best sample as all were over age 60 and 19 were over age 70 so insurance need for them is likely to be nil.

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