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. |
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Judith Fiander
CHIEF EXECUTIVE OFFICER
AUSTRALIAN PHILANTHROPIC SERVICES
AUSTRALIAN PHILANTHROPIC SERVICES
When Judith Fiander first walked in the doors of Australian Philanthropic Services her intention was to volunteer for a few months. Fast forward 14 years and she is the chief executive. Eliza Bavin 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'.