April 3, 2018
The life insurance sector fails to communicate its successes leaving it to be defined by poor examples of behaviour instead, a member of the Parliamentary Joint Committee has claimed.
Addressing attendees at the recent FSC Life Insurance Conference, PJC member and NSW MP, Jason Falinski said the life insurance sector did many things well, but took those for granted, and did not communicate them to consumers successfully.
“I have not meet too many people in this market who are not earnestly trying to clean up messes left behind and I choose to believe it is not due to fact that there is a parliamentary inquiry, but it is a genuine attempt by those people to get things right,” Falinski said.
He also said the life insurance sector has not done enough to explain the benefits of insurance cover to consumers and has become stuck behind presenting products ahead of the benefits of insurance.
“…it was clear your knowledge was not generally understood across the community…”
“What many in this sector take for granted is not broadly understood by consumers. Among the criticisms of this sector is that it does not explain the benefits of insurance sufficiently, and when it does it comes from the point of view of producers of product rather than from the perspective of the consumer and why it is important for them to have life insurance,” Falinski told attendees at the conference.
“From the submissions we received at the Inquiry, it was clear your knowledge was not generally understood across the community and there was a great disconnect between the life insurance sector and demand from some for more prescriptive regulation across that market,” he added.
Falinksi also noted the life insurance sector had yet to pull together when presenting the benefits of insurance and there was a lack of a single voice in this area “…so when there is aberrant behaviour in the sector, those behaviours gets exaggerated as representing the entire sector and those actions live on longer than great actions taken in the sector”.
He also said that success in improving the behaviour and reputation of the life insurance sector would be when “…insurers have a viable business model and consumers get life insurance that suits them and circumstances, and they receive advice on what products best suit them and they understand that in a fashion they understand”.