As life insurers continue to compete for leverage in the increasingly tough life market, Zurich Australia has announced it is relaxing its indemnity income replacement rules.

Strategic Marketing Manager for Life Risk Marc Fabris says the latest changes are aimed at women and others who experience a period away from employment – such as maternity or paternity leave, sabbatical leave or unemployment.

Indemnity policies make up more than a third of new income protection policies.

While other life insurers take into account a claimant’s income history over the previous 12 months to calculate benefits payable, Zurich has increased the period to 24 months.

Mr Fabris says Zurich has also focused on providing customers with a simpler application process, simpler eligibility criteria and simpler access to benefits for life insurance at no extra cost.

“With so many life insurance options available on the market, everyone wants life risk products that are simple and benefits that are meaningful at claim time,” he said.