Consumers are marginally less likely to purchase life insurance online than they are via telephone or in person, a new survey has revealed.
The survey, commissioned by the Financial Services Council (FSC) to assist with its submission to the Financial Systems Inquiry, found that 7% of consumers had used the internet to purchase life insurance in the past 12 months, compared with 9% who did so ‘offline’.
However, 30% of people surveyed said they would be open to using online services to seek a recommendation on life insurance, or to apply for a life insurance policy in the future.
Other key findings from the research, which looked at consumer attitudes towards online wealth management activities, included:
- More than half of those surveyed said they had searched for product and pricing information online in the last six months
- 39% of those with super said they’d checked their balance online, compared to 25% who used offline methods (eg: telephone, paper statements)
- More consumers sought financial advice offline (26%) than online (13%)
- More people read a PDS online (21%) than offline (15%)
Of those who said they would not conduct wealth management activities online, the majority said fear and/or mistrust were the biggest barriers.
FSC CEO, John Brogden, warned that the financial system must keep pace with the changing needs and expectations of consumers and preferences for how they engage with the financial products and services.
“It is critical that the regulatory framework underpinning the delivery of financial services to consumers is drafted to reflect rapid developments in technology and high engagement from consumers with digital technology.
“Developments in technology have outpaced developments in regulation.
“It is critical that the Murray Review recognises that technology considered new and innovative today, could be outdated in a very short period of time,” Mr Brogden said.
The FSC’s Murray Review submission recommends:
- The inquiry ensures financial services regulation is ‘technologically neutral’ so it can evolve as technology changes; and
- A new disclosure regime is implemented which recognises that consumers prefer digital engagement and the ability to access ‘piece by piece’ information
