{"id":25468,"date":"2014-03-18T13:57:46","date_gmt":"2014-03-18T03:57:46","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=25468"},"modified":"2025-09-02T11:34:39","modified_gmt":"2025-09-02T01:34:39","slug":"adviser-frustration-with-direct-insurance-claims","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2014\/03\/18\/adviser-frustration-with-direct-insurance-claims\/","title":{"rendered":"Adviser Frustration With Direct Insurance Claims"},"content":{"rendered":"<div id=\"polls-115\" class=\"wp-polls\">\n\t\t<div class=\"pollHeader\"><strong>What is your main concern with direct life insurance products?<\/strong><\/div><div id=\"polls-115-ans\" class=\"wp-polls-ans\"><ul class=\"wp-polls-ul\">\n\t\t<li>Non-disclosure issues at claim time <small>(37%)<\/small><div class=\"pollbar\" style=\"width: 37%\" title=\"Non-disclosure issues at claim time (37% | 115 Votes)\"><\/div><\/li>\n\t\t<li>'Direct' is not subject to the same compliance regime as advised 'retail' life insurance <small>(20%)<\/small><div class=\"pollbar\" style=\"width: 20%\" title=\"'Direct' is not subject to the same compliance regime as advised 'retail' life insurance (20% | 62 Votes)\"><\/div><\/li>\n\t\t<li>Client has usually received no advice appropriate to their needs <small>(20%)<\/small><div class=\"pollbar\" style=\"width: 20%\" title=\"Client has usually received no advice appropriate to their needs (20% | 61 Votes)\"><\/div><\/li>\n\t\t<li>Generally inferior terms and conditions <small>(16%)<\/small><div class=\"pollbar\" style=\"width: 16%\" title=\"Generally inferior terms and conditions (16% | 48 Votes)\"><\/div><\/li>\n\t\t<li>Leads to insufficient cover for the client <small>(3%)<\/small><div class=\"pollbar\" style=\"width: 3%\" title=\"Leads to insufficient cover for the client (3% | 9 Votes)\"><\/div><\/li>\n\t\t<li>I have no concerns with direct life insurance <small>(3%)<\/small><div class=\"pollbar\" style=\"width: 3%\" title=\"I have no concerns with direct life insurance (3% | 9 Votes)\"><\/div><\/li>\n\t\t<li>Pricing\/value issues <small>(1%)<\/small><div class=\"pollbar\" style=\"width: 1%\" title=\"Pricing\/value issues (1% | 3 Votes)\"><\/div><\/li>\n\t\t<\/ul><div style=\"text-align: center\"><\/div><\/div>\n\t\t<input type=\"hidden\" id=\"poll_115_nonce\" name=\"wp-polls-nonce\" value=\"1d3511f821\" \/>\n<\/div>\n\n<p>Claims-related issues have emerged as the number one adviser concern with direct insurance products.<\/p>\n<p><!--more-->In response to our latest poll, more than one third (36%) of the many hundreds of advisers who have voted have said that non-disclosure issues at claim time is their primary concern. This outcome accords with the many comments we have received from advisers over time, who have expressed their frustration that the &#8216;average&#8217; consumer is relatively uninformed when it comes to life insurance underwriting and to the implications associated, in particular, with innocent non-disclosure.<\/p>\n<p>Other potential issues that have also attracted a share of adviser votes as their top concern with direct insurance include:<\/p>\n<ul>\n<li>Client has usually received no advice appropriate to their needs (20%)<\/li>\n<li>Generally inferior terms and conditions (19%)<\/li>\n<li>&#8216;Direct&#8217; is not subject to the same compliance regime as advised &#8216;retail&#8217; life insurance (19%)<\/li>\n<\/ul>\n<blockquote><p>&#8230; one of the biggest consumer positives associated with direct insurance &#8230; is also one of its biggest liabilities<\/p><\/blockquote>\n<p>Based on the results to date, it appears that one of the biggest consumer positives associated with direct insurance, namely the opportunity to access life insurance with little-to-no underwriting, is also one of its biggest liabilities, at least from the adviser perspective.<\/p>\n<p>As we indicated last week (see: <a href=\"https:\/\/riskinfo.com.au\/news\/2014\/03\/11\/the-problems-with-direct-insurance\/\">The Problems With Direct Insurance<\/a>), the Financial Services Council will be looking at the issues associated with direct insurance when it conducts its <a href=\"http:\/\/fsc.org.au\/events\/fsc-life-insurance-conference-2014\/home.aspx\" target=\"_blank\" rel=\"noopener\">2014 Life Insurance Conference<\/a> in early April. The session dealing with direct insurance will focus on how direct insurance products can bridge the existing gap between &#8216;awareness&#8217; and &#8216;understanding&#8217;, which is at the heart of the issue of innocent non-disclosure at claim time.<\/p>\n<p>And while other key issues for advisers have also emerged, there are very few advisers (only 3% in this poll) who have no concerns with direct insurance products and processes.<\/p>\n<p>Do you have your own concerns, and are they reflected in the poll results so far? Our poll remains open for another week, and we will also report the key comments and outcomes stemming from the Direct Insurance session at the FSC&#8217;s 2014 Life Insurance Conference&#8230;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Claims-related issues have emerged as the number one adviser concern with direct insurance products.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8294,3,49],"tags":[],"class_list":["post-25468","post","type-post","status-publish","format-standard","category-claims","category-general","category-polls"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/25468","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=25468"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/25468\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=25468"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=25468"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=25468"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}