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Trending: Market-driven increases in level of cover for Personal Accident + Sickness

Trending opportunities for Brokers in Personal Accident and Sickness Cover

A Report* comparing 7,000 survey responses in 2020 to 2021 found that over one third of respondents felt under-insured for potential income protection loss resulting from disease, long-term disability, or death of a main household breadwinner. This seems understandable when you look at only 40% of people stating they had Personal Accident cover and only 32% with Critical Illness cover.

Of those respondents who feared being under-insured, only 30-40% noted they had purchased new or additional life and health insurance in the 6 months prior to the survey, leaving a whopping 60-70% who are still potentially under-insured in the Personal Accident and Sickness insurance line.

The same report showed a paradigm shift in insurance, revealing the primary factor in policy choice is no longer just premium price, it’s actually width/scope of cover. Additionally, as a result of the pandemic, consumers will be looking more closely at cover details when they purchase policies.

Unsurprisingly to AHI, when the Report compared 2020 to 2021, 87% of their 7,000 respondents across APAC showed some openness to insurers offering mental health cover. 

While the Report references a consumer survey in 2020, at the height of COVID-19 pandemic, that found nearly 50% of consumers had become more concerned about mental health.

Whilst many insurers are scrambling to amend cover, AHI’s Brokers and customers have the security of knowing we have been a market leader in removing all mental health exclusions across our policy suite since 2017. 

If we look at AHI’s Personal Accident and Sickness cover, outside of no mental health exclusions, the inclusion of additional value-add benefits can add up to anywhere from 8% to 40% on a death benefit claim for our customers.

For example, a recent death benefit claim for $100,000, saw the insured’s family realise a total claim benefit of almost $150,000. With the inclusion of additional cover afforded by AHI’s market leading policies, some of the key benefits included in this payment focused on assisting the insureds family were:

•    Death benefit amount: $100,000.00
•    Dependant Child supplement: $10,000.00
•    Education Fund benefit: $10,000.00
•    Financial Advice benefit $5,000.00
•    Partner Employment Training Benefit $5,000.00

When looking at the list of some of the key benefits in AHI Personal Accident and Sickness cover**, you can see that our comprehensive cover means the insured’s family can maintain their lifestyle despite the loss of a main breadwinners livelihood after sudden death, or in other cases, severe disablement or critical illness. 

In the scheme of insurance premiums, it is a surprisingly small amount to protect your clients, your, or your family’s livelihood with affordable minimum premiums - pending your coverage requirements. When looking at this through the prism of APRA’s Life Insurance sustainability and premium volatility concerns, AHI’s sustainable approach to underwriting in the Personal Accident and Sickness category offers security to help appease those that have insurance fears in the unstable and fluctuating post-pandemic market. 

For more information on AHI's Personal Accident and Sickness Cover, and how to ensure your clients feel secure in the scope of coverage, contact your dedicated underwriter today.

*SwissRe Institute: “One year on: how COVID-19 has impacted consumer views in Asia Pacific – Findings from 2021 survey”
**Inclusions are not standard, please refer to your policy wording