AIA Australia announced it is waiving fees on certain polices that can help improve lapse rates.
The life insurer is waiving the policy fee for the first two years of new Priority Protection members. If applicable, it will also waive the AIA Vitality contribution fee for the first two years of membership.
The offer applies to eligible new Priority Protection (PP) or Priority Protection for Platform Investors (PPPI) from December 4 until 31 March 2018.
Chief retail insurance officer Pina Sciarrone said this offer will increase benefits available to advisers' clients and ultimately help improve lapse rates.
"We're seeing improved lapse rates on our Priority Protection (PP) and Priority Protection from Platform Investors (PPPI) policies when clients engage with their insurance daily via the AIA Vitality program. Our statistics show that they are up to 40% less likely to lapse on their life insurance policies when they engage in AIA Vitality," Sciarrone said.
"AIA understands that when clients embrace the value of life insurance and positive health behaviours at the same time, they go a long way to leading longer, healthier, happier lives whilst protecting their future."
Clients will save at least $82.53 a year for two years on their life policy as well as $120 a year for two years on AIA Vitality (excluding existing AIA Vitality members) if they opt to attach the program to their policy, she said.
AIA Australia recently introduced a charitable giving option as part of its AIA Vitality rewards program.
Under AIA Vitality's Active Benefits incentive, members have an option to donate rewards earned to one of three charities: the Black Dog Institute, Cancer Council Australia or Diabetes Australia. Active Benefits rewards members a $5 voucher each week once a physical activity target is met.
AIA Group recently acquired Commonwealth Bank's Australian and New Zealand life insurance businesses for $3.8 billion, positioning it to be one of the largest life insurers in Asia Pacific.