AIA Australia is to increase new business stepped premium rates in its Priority Protection and Priority Protection for Platform Investors products.

The insurer has also introduced a large sum insured discount band, and improved its stepped premiums.

Further changes include adjusting the crisis recovery stepped premiums and level premiums for life cover and crisis recovery.

The large sum insured discount will be 26% for clients with life cover and term cover between $750,000 and $1 million.

The insurer will also decrease life cover stepped premiums by an average of 5-6%.

The crisis recovery adjustments for new business stepped premiums include an increase by an average of 4-5% for policyholders above the age of 35, and 9% for 35 and under.

Crisis recovery rider new business stepped premiums will increase by an average of 5% for policyholders above the age of 35.

AIA Chief Retail Insurance Officer Pina Sciarrone says the changes will “ensure that advisers can offer more value to their clients”.

She says the life and crisis bundled policy has been tailored “to maintain sustainable options and ensure they are competitive in the market”.