Canstar Cannex (Canstar) has released its annual update on the direct insurance sector, reporting a steady and continuing growth pattern.
The research firm lists two key reasons why it says the direct insurance or ‘DIY’ insurance market is making steady inroads into the general marketplace:
- Wider public knowledge and acceptance of the product
- Continual improvement in the quality of direct life insurance products being offered to the market
Australians seem to like the idea of buying life insurance direct
“More than ever, Australians seem to like the idea of buying life insurance direct, either through insurance companies online, their bank or their health fund,” said Canstar Head of Wealth Management, Stephen Mitchell.
At the same time, the researcher says product providers are making insurance more accessible by allowing auto acceptance with pre-existing medical condition exclusions. This means consumers will be covered except for any pre-existing conditions, says Canstar.
Canstar has also released its annual direct life insurance star ratings service, which compares the direct insurance product offerings from 19 providers.
This year, there was a three-way tie for the major Award for the direct life insurer offering outstanding value across all areas of coverage. The joint winners were:
- Allianz
- Medibank Private
- Real Insurance
“All three top companies are very strong in the things that matter – the suite of features covered, reasonable premium costs and ease of eligibility for the majority of consumers,” said Mr Mitchell, adding:
“This year we noted more companies searching out unique ways to appeal to specialised markets which demonstrates the activity in the sector to the ultimate benefit of the consumer.”
