AIA launches cheaper trauma product aimed at cost-pressed customers

AIA New Zealand has launched a new trauma insurance product covering only the most severe medical conditions, priced 60-70% lower than its comprehensive cover for most customers.

The Severe Trauma product covers high-severity conditions including cancer, heart attack and stroke - the three most common causes of trauma claims. It does not cover the broader range of medical conditions included in AIA's comprehensive trauma insurance.

The product targets younger adults entering the insurance market, older customers considering dropping cover due to cost, and existing policyholders looking to adjust their protection without new medical underwriting.

AIA chief product and marketing officer Alex Kühnast said the product responds to customers downgrading or cancelling trauma cover due to affordability pressures.