ARTICLE

Changes to Priority Protection cancellation process

21 June 2022 dot 3 mins read

AIA Australia (AIAA) are removing the frequency loading and enabling the daily pro-rata refund for cancellations of Priority Protection policies.

Previously when a cancellation request was received, the policy was cancelled from the next monthly payment cycle, and in some instances, this can include a frequency loading. This process improvement was driven by our desire to put the client and adviser at the centre of our business.
 
Three things you need to know about AIAA life insurance cancellations:
 
  1. We will amend the way we process cancellations with effect from 4 June 2022. Cancellations will be processed with an effective date which is usually the day after we receive the request by phone call or email, or the day we receive the request by post.
  2. Cancellations will include pro-rata premium refunds if applicable. These will be paid back to your client, whilst adhering to all Superannuation and Anti Money Laundering laws and rules.
  3. From the effective date, we will also remove any frequency loading.
The main difference to the existing process is that your clients will now receive a refund of any premiums they have paid in advance. In addition to the daily pro-rata refund, clients paying annual, half-yearly and quarterly premiums will also benefit from the frequency loading removal on cancellation. Please note that cancellations could have a commission and in particular claw back implications.

How can you help?

AIAA recommends that your clients undergo a GP health check before cancelling any or all life insurance. This means they are making an informed decision. You could discuss any results or findings with them to ensure they don’t cancel valuable cover they may not be able to reinstate or find elsewhere.
 
If you could not help them understand the value of their AIAA life insurance, please encourage them to put the cancellation request in writing or call us. This request will ensure your client receives the fastest and most accurate refund. Please share any written requests you receive with us promptly. AIAA can only refund the day after the post stamped date we receive the request, the date the email was received, or the date of the verbal request recorded by our contact centre.
 
We anticipate some clients will prefer us to backdate a cancellation request to the date they provided the request to you rather than the date AIAA received this. However, please be aware this will require additional AIAA internal approvals and will be subject to additional processing times. So, whilst this is possible, backdating cancellation requests are not our preferred approach. Please help us by sharing requests as soon as possible to avoid these types of delays.
 
For more information about this update contact your AIAA Client Development Manager or Associate or our Adviser Support team on 1800 033 490.

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