The Value of Coles Life Insurance

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Is the launch of Coles Life Insurance a positive move for consumers?
  • No (68%)
  • Yes (23%)
  • Not sure (9%)

Our latest poll asks you to consider whether the launch of Coles Life Insurance will deliver a positive outcome for Australian consumers.

The benefits outlined with the launch of Coles Life Insurance are mainly those which are usually associated with direct insurance products, including:

  • Simplicity – no difficult underwriting processes to negotiate; no medicals/blood tests
  • Speed of the application process
  • Ability for the life insurance message to reach more Australian consumers
  • A solution for consumers who prefer not to engage with financial advisers
  • Ability to ensure at least some life insurance is in place for the consumer, where none would otherwise exist
  • Availability of ancillary incentives (extra flybuys points, additional discounts and savings)
  • Price guarantee offer against other direct products

Since we reported the launch of Coles Life Insurance last week, adviser feedback has been mixed. Together with a few supporting comments, a number of advisers have questioned the value of this offer.  Issues they raised  reflect the general concerns expressed by advisers in a poll we conducted earlier this year, in which it emerged the main adviser concerns about direct insurance were:

  • Non-disclosure issues at claim time
  • Direct insurance is not subject to the same compliance regime as advised ‘retail’ life insurance
  • The client has usually received no advice appropriate to their needs
  • Generally inferior terms and conditions

What has sparked such interest from the adviser community in the launch of Coles Life Insurance appears to be the sheer scale and magnitude this offer is capable of achieving, given the reach of Coles and its ability to deliver a strong message to the mass market over a long period of time.

If delivered appropriately, direct life insurance has an important role to play in addressing the nation’s underinsurance dilemma. Our question for you in this poll is whether you think Coles Life Insurance will deliver a positive outcome for Australian consumers. Tell us what you think…



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8 COMMENTS

  1. I do not think that Coles are entering the market based on a belief that they are bringing either a superior product offering or making insurance available at a more competitive price. The UK supermarkets (Sainsbury’s, Tesco etc.) have provided a personal insurance offering for quite some time and the reason they entered the market in the first place was because they felt that they could directly target an underinsured and uneducated (in the context of insurance) audience.

    I think the fact that Coles feel that there is an opportunity to enter the life insurance space just highlights once again how grossly underinsured the Australian population is. Coles have done as any business would – if you had a mass number of consumers walking in to your business everyday that are in need of a certain product, you would start to stock, advertise and sell them that particular product.

    Aside from that, who can honestly say that they haven’t picked up a loaf of bread and suddenly reflected on their own mortality?

  2. Those of us in the industry that have been writing insurance policies for the protection of our clients and their assets for many years, are fully aware of the folly of ‘non-disclosure’. I predict a raft of complaints in relation to non-payment of claims due to non-disclosure, which will not only place in financial hardship the insured, but do enormous damage to the reputation of the insurance industry and lead to further under-insurance of the public. Beware insurers, get it right, or face the consequences down the track.

  3. A planner in our office has done a number of comparable illustrations between insurers on our APSL and Coles. On a pure financial comparison, they were cheaper at $250K, but dearer on $500K and $1M. I agree that they are probably targeting a market to which we probably wouldn’t give advice and their product terms are inferior, so peanuts monkeys….shouldn’t be hard to convince a reasonable person wanting insurance that Coles may not suit their needs.

  4. Coles also has metadata (through purchases on CC and FlyBuys membership base) that will allow them to drill down to target market their sweet spot. If it means more Australians are insured and less of a burden on the public purse, then there is room for them

  5. Coles is entering Direct Life Insurance for one reason and one reason only. To make money! Forget any thoughts of how they want to help combat the underinsurance issue in Australia. If that were the case they (Wesfarmers) wouldn’t be offloading their general insurance arm. Personally, I feel that the client base they will attract is the low end of the market who don’t want “advice” as they get plenty of that in the pub. Let them go ahead and get their fingers burned and when they start declining claims (and this will happen) it will give the Greens and Labor something else to whinge about.

  6. I could not agree more on the fact as previuosly stated that they are purely in it “for the money” Coles is a huge concern and marketing life products is just another opporunity to grow the weath. “Fogging” policies to the unwary through colourful TV adds and “catchy” jingles is in my opionion bordering on unconsuable and misleading conduct. There will be claims and i fear many declined claims and the industry will fall backwards on its “sword” for allowing this to happen without questioning the real purpose of their plan.

    Why is it that the well meaning and educated adviser is so inidated with legislation, rules and regulations yet something that no doubt will have a huge impact on our society is left to “run amuck” under the banner of its only General Advice ?

  7. AS said, should you have the people who buy this stuff as your clients. I cant afford them

    Checked the rates – cant find Coles savings, even with fly buys

    Interesting PDS- p8 read the statement on guaranteed renewability and then p3 which hints at changing policy conditions. This PDS is also Pol Doc

    Not interested at over 55s but no set expiry date

    Not good for divorcees-pol ownership is locked in p10

    Child trauma ( limited benefits & max $25k ) is in PDS BUT not on web quoting sight

    App form on net has some very loose questions. How many people know what an auto immune disease is without the sample illnesses our retail questions provide . Non-disclosure City !

    As the lady said, ” Ï name this ship Coles Life Insurance. God bless all those who sail with her “

Comments are closed.