A new strategic partnership between AIA Australia and Allianz Australia Life Insurance (Allianz Retire+) aims to address a retirement gap by combining health and wellbeing expertise with guaranteed lifetime income solutions as more than 2.8 million Australians prepare to retire over the next decade.
This move comes as three in four Australian pre-retirees find the range of superannuation retirement income products confusing, and only 6% of retirees currently use a lifetime income product, according to the Super Members Council's (SMC) Retirement Revolution report released in recently.
Under the partnership, AIA will bring its behavioural science-backed health and wellbeing programs – including AIA Vitality, which rewards people for making healthier choices – while Allianz Retire+ will contribute its Allianz Guaranteed Income for Life (AGILE) retirement income solution. The two insurers will work with superannuation funds, wealth platforms, financial advisers, and retirement service providers to deliver what they describe as a connected experience across a lifecycle framework: Engage → Protect → Recover → Prepare → Retire.
For brokers and financial advisers working in the life and health insurance space, the partnership creates a combined proposition where two separate conversations previously existed. An adviser discussing longevity risk with a client nearing retirement can now introduce both a guaranteed income stream and a wellbeing program designed to keep retirees healthier and more engaged, delivered through a single partnership rather than separate provider relationships.
The arrangement is not a product bundle or a cross-referral between health insurance and retirement income. Instead, it pairs AIA’s engagement and wellbeing capability with Allianz Retire+’s decumulation expertise, giving advisers an integrated narrative when working with clients approaching or already in retirement.
Mr Damien Mu, Chief Executive of AIA Australia, said the partnership reflects a broader view of what retirement planning requires. “At AIA, we are focused on helping people live healthier, longer, better lives. We know that people are currently living longer, but they’re not necessarily spending their later years in good health; and financial security plays a big part in someone’s overall wellbeing. We bring our expertise in lifelong engagement and wellbeing to the table, to combine with the Allianz Retire+ market-leading retirement income guarantee,” he said.
Mr David Kane, chief executive of Allianz Retire+ in Sydney, said the partnership builds on growing adviser and fund interest in retirement income solutions. “Allianz Retire+ is experiencing positive momentum as advisers, superannuation funds, and retirees increasingly recognise the value of retirement income solutions, including Allianz Guaranteed Income for Life (AGILE). By bringing together Allianz Retire+’s retirement income expertise and AIA Australia’s strengths in health, wellbeing, and customer engagement, we can help more Australians retire with confidence and achieve better retirement outcomes,” Mr Kane said, reported Insurance Business.