Clients will be aware the current insurance contract comes to an end on 30 June 2017. We have now reached the end of our competitive tender process with incumbent (AMP) and several other life insurers to finalise a new deal, which will be the best deal we can secure for clients in regards to cost and other key factors such as terms & conditions.
Since 2012, premiums have increased significantly across the insurance industry due to a dramatic rise in claims — many industry funds have faced increases of 50%–100%. Fortunately, Mercer’s prudent negotiations have insulated members from such rising costs.
However, despite our competitive tender process, it is inevitable the premium level clients have enjoyed over the past five years will not continue. Given the current climate, customers should anticipate an increase in premiums from 1 July 2017. We will be able to quantify the exact increase when our preferred insurance partner is announced in early November, and will communicate full details to clients in late November.
A member communication plan is currently being developed for 2017, which we will share once formalised.
If you have any immediate questions, please do not hesitate to contact your Client Service Manager.