Direct insurance 40% of market by 2021

  It is just amazing to me that professional risk advisers have to jump through so many regulatory hoops and it is becoming more difficult every day.........yet the same regulators/commentators allow/condone the proliferation of "BUYER BEWARE....go online, work it out for yourself, buy it with your toothpaste at a supermarket" substandard insurance offerings, that we as professionals know will disappoint the client .........what is going on ?.

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.

  Pretty much agree with Dave. The problem with underwriting at claim time, with all the caveats that Dave mentioned is that
(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'.