To ensure the ongoing appropriateness of our risk rates, we have undertaken an investigation into the underlying claims experience for both death and disability risk products, with the aim of improving the fairness and competitiveness of our offering. 

As part of this extensive exercise, we have considered several rating factors and revised our rates across all of these components. 

We have also introduced improved risk classification to ensure that rates are more suited to the unique risk profile of individual schemes, thus allowing greater fairness in the spread of rates. 

As a result, variation (both increases and decreases) from previous rates is expected and will depend on a scheme’s distribution of rating factors, including age, gender, income and industry.

While the improved risk classification contributes largely to the expected change in rates, it is important to note that a change in the underlying pricing bases is only one of several components that determine the actual change in rates on existing schemes. 

Membership profile changes and scheme-specific claims experience (where credible) are among the additional factors considered when implementing rate adjustments at scheme level.

When risk rate changes will take effect

For new business quotes and requotes on existing business in respect of Old Mutual SuperFund Choice and SuperFund Customised, the effective date of the changes is 10 May 2024. 

For existing Old Mutual SuperFund Choice and Customised clients, the changes will be effective 1 July 2024.

If you have any questions, please contact your dedicated Old Mutual Corporate Consultant or email us.