‘What do you mean it’s not standard!’ Wendy Kirby – Underwriting Manager VIC & SA/NT

‘What do you mean it’s not standard!’

Disclaimer This presentation is provided by Suncorp Life & Superannuation Limited AFSL (SLSL) and is current as at 1 November 2012 but may be subject to change. This information has been prepared without taking into account a person’s financial situation, objectives and needs. Before acting on this information a person should consider the appropriateness of the information having regard to their own personal financial situation, objectives and needs. Asteron Life Complete is issued by SLSL and Suncorp Portfolio Services Limited ABN AFSL (SPSL). When considering whether to acquire or continue to hold a financial product a person should consider the Product Disclosure Statement which is available by contacting their financial adviser or Asteron Life at or by calling A person should seek personal financial and taxation advice. SLSL and SPSL are related bodies corporate of Suncorp-Metway Limited ABN AFSL (Suncorp). Various products and services are provided by different entities of the Suncorp Group. The different entities are not responsible for, do not guarantee and are not liable in respect of the products and services provided by the different entities of the Suncorp Group. Asteron Life Complete is not a bank deposit or other bank liability of Suncorp. This presentation is for adviser use only and is not for distribution to retail investors or clients. Please refer the Asteron Life Financial Services Guide on for information about the financial services we provide.

Learning Objectives To have an understanding of:  How often we apply loadings and exclusions and why  What are the most common loadings and exclusions  How to review a loading and exclusion  Where Asteron Life can help you and your customers

The Asteron Life Facts Top 5 Medical Disclosures:  Skin Lesion  Mental Disorder  Asthma  Back injury/maintenance  Cholesterol

The Asteron Life Facts Most common impairments:  Back/neck disorders  Mental Disorders  Obesity  Knee & Shoulder

Asteron Life Claims in 2014 Cancer  42% of all Death claims  64% of Trauma claims Musculoskeletal system  24% of IP Claims  35% of all TPD Claims Mental Disorders  18% of IP Claims  11% of all TPD Claims

Some of the Facts – Back Injury  In Australia alone, back pain costs around $4.8 billion each year for health care  25% of sufferers in the age group taking 10 or more days off per year  A typical serious workers’ compensation claim involves four weeks absence from work. One-quarter of serious claims required 12 or more weeks off work  One in five serious claims involved an injury to the back

TPD, IP & BE – Exclusions What does this include? Factors to consider Reviewing the exclusion Backs Shoulders Knees Any joint disorder Age Occupation Health Severity How When

Some of the Facts-Mental Health  Almost half the total population (45.5%) experience a mental health disorder at some point in their lifetime  Depression alone is predicted to be one of the world’s largest health problems by 2020 Source: 2007 National Survey of Mental Health and Wellbeing

TPD, IP & BE – Exclusions Mental Illness What does this include Factors to consider Reviewing the exclusion Depression Anxiety Bipolar disorders ADD, ADHD Recency Severity Duration Treatment How When

Some of the Facts - Diabetes  Australia’s fastest growing chronic disease  The sixth leading cause of death  280 Australians develop diabetes every day  Almost 1 in 7 people have diabetes or pre-diabetes Source: 2007 National Survey of Mental Health and Wellbeing & Diabetes Australia 2012

TPD, IP & BE – Loadings Lifestyle & inherited conditions What does this include? Factors to consider Reviewing the loading BMI Hypertension Elevated blood test results Age Duration Current levels Compliance How When

Diabetes Factors to consider What benefits are deleted? Reviewing the exclusion or loading Age Duration Current levels Compliance Severe diabetes complications Adult onset Type 1 diabetes after age 30 How When Loadings that reduce vs increase over time

Some of the Facts - Cancer  Cancer is the leading cause of death in Australia  An estimated 128,000 new cases of cancer will be diagnosed in Australia this year, with that number set to rise to 150,000 by 2020  Cancer accounted for about 3 in 10 deaths in Australia  66% of people diagnosed with cancer in Australia are still alive five years after a cancer diagnosis.  The most common cancers in Australia (excluding non-melanoma skin cancer) are prostate, colorectal (bowel), breast, melanoma and lung cancer. These five cancers account for over 60% of all cancers diagnosed in Australiaprostatecolorectal (bowel) breastmelanomalung cancer.  In 2008, it was estimated that every year over 434,000 people are treated for one or more non-melanoma skin cancers people died of a non-melanoma skin cancer in 2011  Cancer costs more than $4.5 billion in direct health system costs (6.9%)  $378 million was spent on cancer research in , 22% of all health research expenditure in Australia Cancer Council Australia

Trauma - Cancer Most common cancers? Factors to consider Reviewing the exclusion Skin cancer & melanomas Cervical Breast, Bowel, Prostate Family History Date of Diagnosis Histology Treatment Ongoing monitoring Personal history exclusion Family history exclusion

Asteron Life can help YOU !  Tele-Underwriting - 100% in-house done by our own Underwriters  Phone check to clarify any missing information  Calling customers before PMAR’s requested  Our Underwriters will call and keep you updated each step in the underwriting process  Accepting loadings in recorded calls over the phone  Our Service Consultants will help manage suspense

Asteron Life in Action Why use Tele-Underwriting?  Tele-Underwriting take-up rate 25% → 39%  45% same day decision for customers  2100 TIV’s completed since Jan 2015 no recorded complaints  ADC 17 compared to 30 days for paper applications  30% drop in PMAR’s requested  2 nd fastest turn-around time on PMAR10 days - compared to 14 days

Asteron Life in Action Pre-Assessment Service your local Asteron Life UW Team Call your local Asteron Life UW Team OR

Learning Objectives To have an understanding of:  How often we apply loadings and exclusions and why  What are the most common loadings and exclusions  How to review a loading and exclusion  Where Asteron Life can help you and your customers

Retail life insurance reform proposal Adviser and licensee remuneration Effective date Maximum total upfront commission 60% of premium in first year of policy1 July 2018 Maximum ongoing commission 20% of premium1 July year clawback Year 1: 100% of commission on 1 st year’s premium Year 2: 60% of commission on 1 st year’s premium Year 3: 30% of commission 1st year’s premium 1 January 2016 Transitional arrangements Maximum total upfront commission: 80% 70% 60% From: 1 January January January

Retail life insurance reform proposal Quality of advice and insurer practices –APLs widened by 1 July 2016 –Life Insurance Code of Conduct by 1 July 2016 Better enforcement and monitoring –ongoing reporting of policy replacement data from 1 Jan 2016 –Government review by end of 2018 Industry efficiency –ASIC to review SOAs –rationalise life insurance legacy products 22

Retail life insurance reform proposal Next steps 23