AIA Australia has confirmed its position as Australia’s largest group insurer according to Rainmaker Information. This comes after AIA finalised a $160 million contract with Sunsuper.
The insurer won the mandate based on its competitive price and ability to meet the fund’s new model requirements. Sunsuper has been working on a new insurance service model, which includes life stage and age-based insurance options.
Replacing Suncorp Life, AIA will provide death, disablement and income protection insurance cover to over one million members of the $15 billion-plus Sunsuper. Metlife Insurance, which was another incumbent insurer of Sunsuper, will continue to provide insurance to its corporate fund members.
Sunsuper’s Chief Executive Tony Lally commented, “As part of the new arrangements, we’ll also introduce new premium rates that will offer better value for members, with each dollar of premium buying an average 38 per cent extra death and disability cover.”
These new arrangements will be effective from July next year, and is expected to generate annual insurance premiums of around $160 million per year.
According to Rainmaker Information, the win places AIA in the top spot as Australia’s biggest group insurer, with 28 per cent market share by members. The second largest insurer, OnePath Life, has 19 per cent market share.
AIA’s contract comes a month after another large group insurance mandate was handed to TAL from the $20 billion First State Super. Tower expects the deal to generate $75 million-plus in annual insurance premiums.
Sourced and edited from the Financial Standard.
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