There is a significant upturn in advisers’ satisfaction with life insurers, Adviser Ratings latest Advice Landscape study finds.
In an article on its website, the research firm says its annual study, currently underway with input from nearly 1,000 advisers, “…reveals a significant shift in advisers’ satisfaction with their life insurers.”
It says this change follows the implementation of LIF “…and widespread repricing in the industry, particularly impacting Income Protection products. Advisers are increasingly acknowledging the life insurers’ foundational reset efforts and their invitation to engage in writing new business.”
…2,000 insurer reviews … have resulted in the industry achieving a positive Net Promoter Score for the first time since the full implementation of LIF…
Adviser Ratings says that to date, approximately 2,000 insurer reviews from these advisers have resulted in the industry achieving a positive Net Promoter Score for the first time since the full implementation of LIF.
The company says that over the past year, there’s been “…a marked increase in the urgency displayed by both regulators and insurers in addressing the chronic under-insurance issue and the consistently low levels of new business.”
It points to initiatives such as the formation of the Council of Australian Life Insurers, the investment in new technologies like LifeBid to enhance operational efficiencies and APRA’s December initiative to open a data transformation consultation project which, it says, highlight this urgency.
“These efforts aim to gather more detailed data to help regulators, policymakers, and insurers better understand and manage industry risks.”
The company notes that this comes in the wake of APRA’s reminder to insurers about their commitments regarding premium increases and the transparency of that “…addressing a key challenge for advisers in persuading clients to renew policies amidst inflationary pressures.”
…these proactive steps are commendable, yet the challenges remain significant…
Adviser Ratings says these proactive steps are commendable, yet the challenges remain significant.
The firm says to the real-life implications for advisers are illustrated by the experience shared by one adviser, involving a client diagnosed with a terminal illness. A year earlier, despite the client’s initial resistance, the adviser had convinced him to retain his life cover.
Adviser Ratings says that having engaged with almost every insurer over the last three months “…it’s clear that awareness of these challenges is at an all-time high, and concerted efforts are underway. However, questions remain about the patience of many insurers’ international parents and the potential role of the Government. Is there a need for a fundamental reassessment in this sector?”
