‘What do you mean it’s not standard!’

Wendy Kirby – Underwriting Manager VIC & SA/NT

‘What do you mean it’s not standard!’

Disclaimer• This presentation is provided by Suncorp Life & Superannuation Limited AFSL229880 (SLSL) and is current as at 1 November 2012 but

may be subject to change. This information has been prepared without taking into account a person’s financial situation, objectives and needs. Before acting on this information a person should consider the appropriateness of the information having regard to their own personal financial situation, objectives and needs. Asteron Life Complete is issued by SLSL and Suncorp Portfolio Services Limited ABN 61 063 427 958 AFSL 237905 (SPSL). When considering whether to acquire or continue to hold a financial product a person should consider the Product Disclosure Statement which is available by contacting their financial adviser or Asteron Life at www.asteronlife.com.au or by calling 1800 221 727. A person should seek personal financial and taxation advice. SLSL and SPSL  are related bodies corporate of Suncorp-Metway Limited ABN 66 010 831 722 AFSL 229882 (Suncorp). Various products and services are provided by different entities of the Suncorp Group. The different entities are not responsible for, do not guarantee and are not liable in respect of the products and services provided by the different entities of the Suncorp Group. Asteron Life Complete is not a bank deposit or other bank liability of Suncorp.

• This presentation is for adviser use only and is not for distribution to retail investors or clients. Please refer the Asteron Life Financial Services Guide on www.asteronlife.com.au for information about the financial services we provide.

Learning Objectives

To have an understanding of:

How often we apply loadings and exclusions and why

What are the most common loadings and exclusions

How to review a loading and exclusion

Where Asteron Life can help you and your customers

The Asteron Life Facts

Top 5 Medical Disclosures: Skin Lesion Mental Disorder Asthma Back injury/maintenance Cholesterol

The Asteron Life Facts

Most common impairments: Back/neck disorders Mental Disorders Obesity Knee & Shoulder

Asteron Life Claims in 2014Cancer

42% of all Death claims 64% of Trauma claims

Musculoskeletal system 24% of IP Claims 35% of all TPD Claims

Mental Disorders 18% of IP Claims 11% of all TPD Claims

Some of the Facts – Back Injury In Australia alone, back pain costs around $4.8 billion each

year for health care

25% of sufferers in the 18-55 age group taking 10 or more days off per year

A typical serious workers’ compensation claim involves four weeks absence from work. One-quarter of serious claims required 12 or more weeks off work

One in five serious claims involved an injury to the back

TPD, IP & BE – Exclusions

What does this include?

Factors to consider

Reviewing the exclusion

• Backs• Shoulders• Knees• Any joint disorder

• Age• Occupation• Health• Severity

• How • When

Some of the Facts-Mental Health

Almost half the total population (45.5%) experience a mental health disorder at some point in their lifetime

Depression alone is predicted to be one of the world’s largest health problems by 2020

Source: 2007 National Survey of Mental Health and Wellbeing

TPD, IP & BE – Exclusions Mental Illness

What does this include

Factors to consider

Reviewing the exclusion

• Depression• Anxiety• Bipolar disorders• ADD, ADHD

• Recency• Severity• Duration• Treatment

• How• When

Some of the Facts - Diabetes

Australia’s fastest growing chronic disease The sixth leading cause of death

280 Australians develop diabetes every day

Almost 1 in 7 people have diabetes or pre-diabetes

Source: 2007 National Survey of Mental Health and Wellbeing & Diabetes Australia 2012

TPD, IP & BE – LoadingsLifestyle & inherited conditions

What does this include?

Factors to consider

Reviewing the loading

• BMI• Hypertension• Elevated blood test results

• Age• Duration• Current levels• Compliance

• How• When

Diabetes

Factors to consider

What benefits are deleted?

Reviewing the exclusion or loading

• Age• Duration• Current levels• Compliance

• Severe diabetes complications• Adult onset Type 1 diabetes after age 30

• How• When• Loadings that reduce vs increase over time

Some of the Facts - Cancer Cancer is the leading cause of death in Australia

An estimated 128,000 new cases of cancer will be diagnosed in Australia this year, with that number set to rise to 150,000 by 2020

Cancer accounted for about 3 in 10 deaths in Australia 66% of people diagnosed with cancer in Australia are still alive five years after a cancer diagnosis.

The most common cancers in Australia (excluding non-melanoma skin cancer) are prostate, colorectal (bowel), breast, melanoma and lung cancer. These five cancers account for over 60% of all cancers diagnosed in Australia

In 2008, it was estimated that every year over 434,000 people are treated for one or more non-melanoma skin cancers - 521 people died of a non-melanoma skin cancer in 2011

Cancer costs more than $4.5 billion in direct health system costs (6.9%)

$378 million was spent on cancer research in 2000-01, 22% of all health research expenditure in Australia 

Cancer Council Australia

Trauma - Cancer

Most common cancers?

Factors to consider

Reviewing the exclusion

•Skin cancer & melanomas•Cervical•Breast, Bowel, Prostate•Family History

•Date of Diagnosis•Histology•Treatment•Ongoing monitoring

•Personal history exclusion•Family history exclusion

Asteron Life can help YOU ! Tele-Underwriting - 100% in-house done by our own Underwriters

Phone check to clarify any missing information

Calling customers before PMAR’s requested Our Underwriters will call and keep you updated each step in the

underwriting process

Accepting loadings in recorded calls over the phone

Our Service Consultants will help manage suspense

Asteron Life in ActionWhy use Tele-Underwriting?

Tele-Underwriting take-up rate 25% → 39%

45% same day decision for customers

2100 TIV’s completed since Jan 2015 no recorded complaints

ADC 17 compared to 30 days for paper applications

30% drop in PMAR’s requested

2nd fastest turn-around time on PMAR10 days - compared to 14 days

Asteron Life in ActionPre-Assessment Service

email your local Asteron Life UW Team

Call your local Asteron Life UW Team

OR

Learning Objectives

To have an understanding of:

How often we apply loadings and exclusions and why

What are the most common loadings and exclusions

How to review a loading and exclusion

Where Asteron Life can help you and your customers

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Retail life insurance reform proposal Adviser and licensee remuneration  Effective date

Maximum total upfront commission

60% of premium in first year of policy 1 July 2018

Maximum ongoing commission

20% of premium 1 July 2016

3-year clawback Year 1:100% of commission on 1st year’s premiumYear 2:60% of commission on 1st year’s premiumYear 3:30% of commission 1st year’s premium 

1 January 2016

Transitional arrangements Maximum total upfront commission:80%70%60%

From:1 January 20161 January 20171 January 2018

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Retail life insurance reform proposal

Quality of advice and insurer practices– APLs widened by 1 July 2016– Life Insurance Code of Conduct by 1 July 2016

Better enforcement and monitoring– ongoing reporting of policy replacement data from 1 Jan 2016– Government review by end of 2018

Industry efficiency– ASIC to review SOAs– rationalise life insurance legacy products

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Retail life insurance reform proposal

• Next steps