At last some good news for AIG Life Australia with the company announcing a major upgrade of their insurance suite while also coming runner-up in the CoreData Life Company of the Year awards.

The firm's Priority Protection insurance suite is receiving a facelift with the introduction of Optimum Premium cover.

The cover is a hybrid between stepped and level premiums, initially providing the low cost of a stepped premium up to a point when it changes to level premium at a certain period in time.

Optimum Premium could save clients thousands of dollars in premiums and allows financial advisers to keep business on the books for longer, said David Mounsey, AIG Life head of adviser services.

AIG Life also launched its forward underwriting benefits service, which allows clients to take a medical test now and receive up to $10 million of crisis, life or total and permanent disablement (TPD) insurance in the future if specific events occur.

The definitions for coronary artery angioplasty, heart attack and heart valve surgery have all been revised and enhanced from December while the firm also announced a $10 million, three-year technology upgrade program to move its business to straight through processing (STP) technology.

Meanwhile, AIG Life scored the ‘runner-up' award in the CoreData Life Company of the Year 2008, just behind Zurich but beating fellow finalists AXA and Asteron.

During the upgrade launch, AIG Life Australia managing director, Stuart Harrison sought to ease financial advisors' concerns over the health of the life insurer, reiterating the separate relationship with its parent company.

Harrison said the firm posted all time record production figures in September, with $27.6 million in first year premiums and dismissed concerns the life insurance company would be sold.