Direct insurance 40% of market by 2021BY ALEX DUNNIN | THURSDAY, 5 JUL 2012 11:45AMDirectly sold insurance will comprise 40% of the market within a decade and intermediaries need to be prepared to work with the growth channel rather than see it as a competitor. |
Editor's Choice
Former super fund adviser receives permanent ban
|A financial adviser, who worked at several major superannuation funds, has been permanently banned after he tried to persuade clients to transfer their retirement savings into a bank account he controlled.
Advisers should leverage US tech blueprint: SIAA panel
|While the US is at the forefront of financial advisers leveraging the best technology available, Australia's advice industry cannot be left behind and should learn from the blueprint it has laid out, investment experts told the Stockbrokers and Investment Advisers Association (SIAA) Conference this ...
Australian Food Super closes failed investment option
|Australian Food Super, previously known as the Australian Meat Industry Superannuation Trust, is closing its Shares product, which failed last year's Your Future, Your Super test.
Pacific Current sells stake in investment firm to Goldman Sachs
|Pacific Current Group has sold a portion of its interest in a US-based investment firm for US$35.2 million.
Products
Featured Profile
Robert De Dominicis
CHIEF EXECUTIVE OFFICER
GBST HOLDINGS LIMITED
GBST HOLDINGS LIMITED
It was during a family sojourn to the seaside town of Pescara, Italy, Rob DeDominicis first laid eyes on what would become the harbinger of his future. Andrew McKean writes.
I can see that insurers involved obviously figure it is more profitable to underwrite a limited number of cases at claim time, than all cases initially ....especially when you can add in plenty of non-disclosure issues, pre -existing conditions and dare I say it ...a smidge of "divide and conquer" through outsourced call centres..............but is it good business?
I don't think so....I believe that "direct insurance is false economy because it won't take too many declined claims, before the Media crucifies our industry....AGAIN.....
Sadly, professional risk advisers will also be bagged AGAIN and surprise, surprise...our regulations will tighten further...Not to mention those customers who really thought they had their family covered.
I think direct marketing insurance sales should be banned.
(a) many people will buy direct without understanding that they are not actually covered - how many actually read the fine print?
(b) Australians will be increasingly under insured, particularly those that need it most as they will have little or no opportunity of being underwritten.
Direct distribution has to be regulated in the same way as brokers and agents to ensure the insurance products and services are delivered 'fit for purpose'.