Pre 2021 policies are absolutely higher quality policies, your comment relates more to in appropriate pricing & actuarial assumptions from the insurers perspective, which has missed the mark resulting in lower insurer profitability. Outside of agreed value definitions (which was one subset of changes), the criteria for total disability & ongoing income offset clauses are substantially inferior post 2021 (particularly for business owners).
Given the superior quality of pre 2021 income protection, Clearview has a viable option to re-price these back book policies without causing the majority of policy holders to cancel their policy. Most advisers would be hesitant to replace a pre 2021 IP policy with a newer policy, unless the pricing differential was very substantial due to the quality differential. Most insurers have been re-pricing their back-book of pre-2021 IP policies to achieve profitability, I expect that Clearview will take a similar approach over the coming 1-2 years.
When you consider their new product line is profitable, if they progressively re-price the back-book to profitability then the current SP is highly attractive.
CVW Price at posting:
32.5¢ Sentiment: Buy Disclosure: Held
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