Integrity Group Holdings Limited (IGHL) have announced that its wholly owned subsidiary Integrity Life Australia Limited (ILAL) (together Integrity Group) will no longer be writing new life insurance policies in the Retail Advised and Corporate Group Insurance channels.
The Chairman of Integrity Group, Eric Dodd stated “This has been a very difficult decision. The Board and the Integrity Leadership Team have been actively reviewing the strategic direction of Integrity Group and have considered and progressed a range of options. Protection of policyholders is critical and as such the Board has taken the difficult decision to close to new business in the Retail Advised and Corporate Group channels.”
Chief Executive Officer and Managing Director, Sean McCormack said “I’m incredibly sad for the entire Integrity team and our many partners who have supported us, especially in recent years. This is not the news we’d hoped to share however the significant challenges of the Australian life market coupled with the realities of growing a business from the ground up mean that it is necessary. It is vitally important that we remain true to what’s most important, being able to protect and support our policyholders and their loved ones.”
“With the support and confidence of our partners, and despite the challenges, we have achieved very strong growth since March 2021 – for this we’re very grateful. Unfortunately, the Retail Advised channel has seen a substantial reduction in the number of Financial Advisers providing risk advice over the last five years. The number of lives insured across all channels has substantially reduced and the market decline means that scale is critical. Achieving scale requires significant ongoing investment, and we have reached a point where it is not in either the policyholder or shareholder interests to continue to write new Retail Advised policies.”
“Given the challenges with Retail Advised, we have also taken the decision to cease quoting for new Corporate Group Insurance business, to maintain our capital for the benefit and protection of existing policyholders. Our commitment to claims is unchanged. We remain focused on supporting our existing policyholders and we are committed to looking after them in their time of need.”
For the Retail Advised channel this change will take effect from 29 September 2023. For the Corporate Group Insurance channel this change takes effect immediately (5 September 2023). Other Integrity partnerships remain open to new business at this time. Integrity Group confirmed that for all Retail Advised and Corporate Group policyholders there will be no change to their existing insurance policy terms or conditions in accordance with the relevant Product Disclosure Documents (PDS) and Policy Documents. Claims processes will remain unchanged, and Integrity will continue to meet Life Insurance Code of Practice obligations.
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