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NRMA stopped offering Life Insurance in April 2021

I see from their website that NRMA has stopped offering life insurance:


NRMA is part of the IAG group.
I cannot find an explanation for this change. Is it due to the risk from Covid-19?

You might best contact them and ask, accepting it is their business decision. Underwriters such as IAG sell (underwrite) policies for many brand names for many type of insurance, but it could be so simple as IAG reduced their commissions or more likely IAG simply stopped underwriting (selling) life, as implied in their product list.

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IAG group made an announcement a while back that they were exiting life insurance (from memory it wasn’t profitable due to competition in the sector). Any existing life insurance policy holders should have received a letter saying the policy would be transferred to another life insurer (in NZ they were transferred to AON).

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Thanks - to both Phil and phb.

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Suncorp’s Life Insurance arm transferred their policies out of Suncorp to another firm and now it has all become part of TAL. So I would not surprise me that NRMA and similar have had similar movement of these types of policies off their books. This may just be the way for them to get rid of poorly paying Risk holdings.

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I cannot give you a direct answer but there are many reasons why an insurer might choose to enter or retreat from a given segment of the market. I would not jump to any conclusion about the reason why. Making the connection with COVID with no supporting evidence is a case of the post hoc fallacy, after this therefore because of this.

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The decision was made pre-Covid by IAG (around 2018/18 from memory). There should be a company announcement in the ASX if one has time to search

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