September 4, 2017
Should there be more severity-based trauma product solutions made available in the Australian market?
- Yes (66%)
- No (24%)
- Not sure (10%)
Advisers have lent their general support for more severity-based trauma insurance offerings to be made available in the Australian market.
As we go to press, 68% of those voting in our latest poll have given their thumbs up for more severity-based trama products, but one in four advisers (24%) is against the idea, while 8% remain on the fence (see: ANZ Wealth Launches Severity-Based Trauma Option).
Support for more severity-based trauma solutions has been accompanied by some qualifyting remarks about a number of issues that may need to be addressed before some advisers embrace this style of product more fully. Those issues include:
- Litigation risk
- Need for greater simplicity
Addressing these concerns, comments have included:
“Adviser compliance for a policy which provides PART of the sum insured depending on medical opinion, is, in my view, liability city for litigation lawyers… severity based trauma policies should never be sold under GENERAL ADVICE.”
The old chestnut that people won’t buy what they don’t understand is true here…
“I personally find the new policies very complex and difficult to explain to clients. For this reason I’ve stayed away from them…”
“I understand the products but find I can’t explain them as ‘confidently’ as the old style ones. I can explain the concept…But with these newies there really is a lot of devil in the detail. The old chestnut that people won’t buy what they don’t understand is true here so I’m giving the product line a wide berth for now.”
Advisers may be interested to know that a number of product providers have contacted Riskinfo asking for more details around this poll, which we think indicates the possibility that it may not be too much longer before more severity-based trauma products are released into the Australian theatre of operations.
We’ll report back on any future activity in this area but also encourage you to have your say on this question now. Send your message to the product providers as our poll remains open for another week…