Zurich unveils new TPD cover as disability insurance landscape evolves
Zurich unveils new TPD cover as disability insurance landscape evolves | Insurance Business Australia
Insurance News
Zurich unveils new TPD cover as disability insurance landscape evolves
Company outlines driving forces behind the new product
Insurance News
By
Roxanne Libatique
Zurich Financial Services Australia has launched a new total and permanent disability (TPD) insurance product, known as Continuous Care.
The new product aims to address the extended care requirements that may arise from severe accidents or illnesses.
It provides coverage for individuals who need long-term support from carers, whether professional or family members, as well as for modifications to homes and vehicles to accommodate their new needs.
This new flexibility allows policyholders to adjust their coverage based on the specific care required, which can help reduce costs by offering more affordable premiums compared to conventional TPD products.
Factors that impacted the development of Zurich’s TPD insurance
Jacqui Lennon, Zurich Australia’s head of retail, pointed to changing trends in medicine and the workforce as driving forces behind this new product.
“Advancements in modern medicine, paired with significant changes to the makeup of Australia’s workforce, have led to almost 80% of Zurich TPD claims not requiring ongoing, continuous care,” she said.
She noted that this shift, along with rising cost-of-living pressures, has created a demand for more adaptable insurance products that can be customised to better meet individuals’ needs.
Zurich’s Continuous Care product is part of a broader set of updates to its TPD and income protection offerings across the Zurich and OnePath brands. These updates include revised assessment periods for claims, enhanced rehabilitation services, and simplified policy definitions and premium structures to make the products easier to understand and manage.
Zurich has introduced the new TPD option as the Australian disability insurance landscape evolves.
NDIS reforms
Australia’s National Disability Insurance Scheme (NDIS) is undergoing significant reforms, with major changes set to begin on Oct. 3.
The National Disability Insurance Agency (NDIA), which manages the NDIS, has reassured participants that the scheme’s core functions will remain largely unchanged despite the reforms.
“I want to reassure you that for most people, not much will change about the way you experience the NDIS now,” said NDIA CEO Rebecca Falkingham.
She added that the immediate impacts will be minimal for most participants. However, more substantial changes will take effect later in 2024 as the NDIS implements a new planning framework.
One of the key changes is the introduction of a new definition of what constitutes NDIS-funded supports, aimed at providing clearer guidelines on approved and non-approved purchases. The new rules are currently being finalized, with ongoing consultations to ensure that participants understand the changes before they are enforced.
Starting in October, participants whose plans are reviewed will also notice a shift toward budget-based funding, which will provide a clearer overview of total available resources rather than breaking them down into line-item categories. Initially, all new plans will be set for a 12-month duration, but longer-term plans could become more common later.
The federal government has also allocated more than $720 million in the 2023-24 budget to support these NDIS reforms, with an additional $468.7 million planned for 2024-25. These funds are intended to improve participant services and ensure the scheme’s financial sustainability in the long term.
Related Stories
Keep up with the latest news and events
Join our mailing list, it’s free!
