CommInsure policyholders will receive a letter from AIA Australia and CommInsure Life, informing them of the intended transfer by way of scheme.
The transition will allow AIA to wrap up the acquisition of CommInsure from CBA.
All life insurance products and associated policies and services issued under the CommInsure, Colonial and Commonwealth Financial Services brands used by the Colonial Mutual Assurance Society Limited (CMLA) will transfer to AIA.
The life insurer has stated the scheme will not affect any policy terms and conditions, nor how policyholders and customers do business with their insurer.
The Federal Court is expected to consider the scheme at a hearing in March.
CBA completed its exit from CommInsure in 2019, receiving an upfront payment from AIA of $500 million.
The sale follows its business simplification strategy, where the bank has shed various brands across wealth and insurance.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].