Aotearoa is one of the most underinsured nations in the world and AIA NZ is launching AIA Starter Plans as the next stage in the journey to close the protection gap.
The three new digital AIA Starter Plans will offer solutions targeting Kiwis who are most affected by the protection gap. The protection gap refers to the shortfall in financial resources many Kiwi households would experience should their primary earner be unable to continue to work.
The plans are ideal for Kiwis who want basic, affordable, and rewarding insurance they can purchase entirely online.
AIA NZ Chief Executive, Nick Stanhope, says that AIA are innovators and are always looking at ways to ensure Kiwis are better protected.
“At AIA we have a dream for NZ to become one of the healthiest and best protected nations in the world. Currently 71% of our population are underinsured with either insufficient insurance cover or no cover at all,” says Stanhope.
“We believe we have a responsibility as the country’s largest life insurer to move away from simply being a payer of claims, to partnering with Kiwis and encouraging them to live Healthier, Longer, Better Lives.
“While we may not be the first insurer to offer insurance through online channels, AIA Starter Plans will change the game when it comes to competitive, affordable, and rewarding basic cover.”
AIA Starter Plans are built for young adults and families, those who are most likely to be underinsured or not insured at all.
AIA Healthy Starter, AIA Starter Life, and AIA Starter Life Plus are the three new plans. All come with an AIA Vitality Starter membership and offer basic life, rent or mortgage protection, with an optional add-on of Specialist and Diagnostic Testing for medical conditions.
“These plans challenge the expectation that insurance isn’t ‘good value for money.’ Ideally with life and health insurance you never want to make a claim, so for young Kiwis it's hard to see the benefits of the expense,” continues Stanhope.
“But with AIA Starter Plans, customers not only receive good basic cover, but they also receive AIA Vitality Starter, a programme that provides cash back, discounts and rewards simply for hitting a daily step count, going to the gym, or getting your flu jab.”
AIA Vitality Starter is part of AIA Vitality, a science-backed health and wellbeing programme that rewards positive health and wellbeing choices. Members receive points through activities such as physical activity, sleep and mindfulness, or completing health and wellbeing checks, and in turn receive discounts and vouchers for a range of partner brands including Les Mills, Countdown, Apple, and more.
“We know the cost of living is rapidly rising in NZ, and as with most purchases, a trade-off is necessary against other household spending. However, from our extensive research we know there is appetite for AIA Starter Plans and to have insurance cover in place,” concludes Stanhope.
The online-only AIA Starter Plans are a first for AIA NZ, which traditionally uses an advice-only model to sell insurance policies according to a client’s specific individual circumstances.
Advisers will remain instrumental in ensuring Kiwis receive tailored advice to meet their needs. AIA Starter Plans complement the advice channel by helping those who traditionally do not engage with the financial advice model to get on the valuable protection ladder sooner in life.