Case studies

Health & benefits


An Australian subsidiary of an international construction and engineering company engaged Aon to review the structure and terms of a long-standing income protection (IP) scheme managed by a major consulting firm.


The client partnered with Aon to:

  • renegotiate and improve their IP policy terms to reduce the requirement for underwriting
  • reduce the costs of the benefit plan which had increased by more than 100% in the previous three years.


Initial discussions with the client revealed they were confident in selling ‘reasonable’ alterations to benefit design internally. Aon proposed:

  • a reduction in benefit period from ‘to age 65’ to ‘5 years’
  • a lump sum benefit of 2 x salary for death by any cause
  • introducing TPD to compensate for reduction in income benefits
  • cover from an offshore insurer who was able to match policy definitions and provide IFSA takeover terms to ensure a seamless transfer.


After implementing Aon’s solutions:

  • medical underwriting burden was significantly reduced with 75% less cases to deal with
  • a staff survey revealed the change in benefits was well received, with the perception it was a smarter benefit design with no real loss of benefits
  • an overall premium saving of $1millon was achieved, approximately 50% of previous premiums
  • mandatory life cover was included in the cover at no additional cost.