When Integrity Life ceased offering new policies in September 2023, it began searching for an insurer to take over its existing policies. AIA has now been identified as a suitable partner for this transfer.
Integrity and AIA have submitted an application under Part 9 of the Life Insurance Act 1995 proposing a Scheme via which the assets and liabilities can be transferred.
Subject to Federal Court approval, the transfer is scheduled to take effect on 1st March 2025.
From this date the following changes will apply to Integrity Life policyholders:
- AIA Australia will become their insurer
- They will receive a policy schedule, setting out the terms and conditions of their new AIA policy
- Their premium will be adjusted in accordance with the new policy
- Claims and policy administration will be managed by AIA
- AIA Vitality membership will be available, with premium discounts and rewards
Importantly, no medical underwriting will be required for the new policies.
In order to minimise any changes, Integrity Here For You policies will be transferred to their closest matching AIA Priority Protection policy, however there will still be some differences in the terms and conditions. Most policyholders are also likely to experience an increase in their premium.
The proposed Scheme is believed to be in the best interests of Integrity policyholders as a whole. Without the transfer, Integrity may be unable to discharge its liabilities in the future and premium increases would be higher than those associated with the transfer. With AIA, policyholders will benefit from a financially stable insurer, capable of securing future benefit payments.
These conclusions are supported by an Independent Actuary report, as well as reviews from the actuaries of both AIA and Integrity.
If you are an Integrity policyholder affected by this policy transfer you can explore your insurance options using our online comparator Compare Quotes Online.