The insurer held a webinar for advice businesses in which its executive addressed the economic environment, which is creating challenges for both insurers and their customers.
Chief of distribution Andries van Graan said in that context, it had been decided there would not be a conference this year.
“There’s a very tough economic environment…So as a business, we reflected on having a lavish big conference event in an environment where our end customers are struggling. And we thought it was not the right time to do. So therefore, this year, we will not do that.
“Will we have a conference in the future? Yes, we will. What we've decided to do this year is more smaller events where we reach everybody and create those opportunities for advisers to connect and have conversations.”
The company is also considering customers’ ability to pay when tailoring its products.
“Some customers will need affordability options,” chief customer solutions officer Kate Dron said.
“And so what we did with that is we introduced a new standalone specific injury cover.
“We took some of the built-in features in our product, and we made it optional. But we also introduced a multi-benefit discount. And I'm pleased to say that since we launched in October, we have just rapidly gone on the up with Partners Life Journey Plan (PJP).
“And even more pleasing is that we're seeing a lot more bundles coming through.
“Your customers, our customers, are benefiting from that multi-benefit discount. So, you know, we really encourage you to make use of that feature of the product for your customers.”
Advisers asked why there was a strategy to pass on discounts to clients rather than making premiums cheaper across the board.
Dron said it was partly due to the discount relating to multiple products, which could create economies of scale.
“If we were to reduce premiums across the board, it would not be at the same level as what you get when you have multiple products, and so that's the approach that we've taken. It means that your customer is rewarded for considering the full range of risk products that they've got.
“That's the key focus of why we've taken that approach rather than having the underlying premiums being cheaper.”
Mark Schollum, chief financial officer, said there were a number of hurdles for businesses and the wider economy to navigate.
“Just when you thought the local economy was maybe kind of starting to stabilise, another global shock wanders along.
“Petrol prices are already up… not quite sure where that will lead, but uncertainty is almost a certainty in that respect.”
He said it was added to by the impending election. He said the health system was under pressure and was likely to be a key topic of discussion on both sides of the political divide as the campaign picked up.
The Financial Services Council has been engaging with government on behalf of the insurance sector in regards to what fringe benefit tax incentives could be offered to encourage uptake of insurance.
“I think it will be a fascinating time period in the lead up to the election and I hope to watch this space on that front.”
He said there would continue to be strong demand for Partners Life’s medical products in particular in the short term.
“That healthcare ecosystem certainly remains front and centre in the minds of many at the moment. I think we've continued to see that manifest in claim volumes.
“Overall competition in the market, it is fierce, and I think it is unrelenting, really.
“The one thing that we probably can be satisfied about is we did just recently get our rating reaffirmed, our AM Best credit rating was reaffirmed at an A excellent, so I think that's a really positive stamp, if you like, from the rating house on our ability to be there to make good on the promises that we make to your customers.”
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