As part of Chubb Life’s commitment to ensuring the long-term sustainability of its core covers, the upcoming changes to the underlying premium rates will affect current life, trauma and disability covers across Assurance Extra, Business Assurance, Business Extra and Agribusiness Extra.
The new underlying rates will come into effect on June 26, 2023.
Having recently reviewed its claims experience, Chubb maintains the changes will ensure pricing remains sufficient to cover claims, while retaining sustainability for the future.
In a statement Chubb said it’s confident the new rates are competitive and will contribute to the long-term sustainability of products while remaining good value for customers.
What will those changes mean?
Chubb Life’s Yearly Renewable Term Life cover rates on Assurance Extra, Business Assurance, Business Extra and Agribusiness Extra will increase by an average of 3.2%. Level Life cover rates remain unchanged.
Yearly Renewable Term Trauma cover rates on Assurance Extra, Business Assurance, Business Extra and Agribusiness Extra will increase by 4.7% on average, while Yearly Renewable Term Income Cover rates on Assurance Extra and Agribusiness Extra will go up 2.9% on average.
Mortgage Repayment Cover rates are increasing by an average of 8.1%.
Premium Cover rates on Assurance Extra, Business Assurance, Business Extra and Agribusiness Extra are increasing by an average of 2.9%.
Key Person Cover rates are increasing by an average of 10% varying by occupation.
Chubb says any given customer the increase may be more or less than the average depending on their age and gender.
How will this impact customers?
For new customers, the refreshed rates come into effect on June 26, 2023 for all new policies.
The new rates will be applied to existing customers at their next premium review date or anniversary from June 26, 2023. They will receive communication from Chubb Life to advise of these changes.
Chubb says original quotes submitted before June 26, 2023 can be honored at the old rates for 30 days. Any quotes that are honored on the old rates will need to be issued within the 30 day window, and will be subject to the new rates at their first premium review or anniversary, whichever comes first.
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