{"id":36285,"date":"2017-03-03T15:00:41","date_gmt":"2017-03-03T04:00:41","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=36285"},"modified":"2025-09-02T11:34:01","modified_gmt":"2025-09-02T01:34:01","slug":"direct-insurance-has-sting-in-the-tail","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2017\/03\/03\/direct-insurance-has-sting-in-the-tail\/","title":{"rendered":"Direct Insurance Has ‘Sting in the Tail’"},"content":{"rendered":"

The Association of Financial Advisers (AFA) has continued to criticise direct insurance stating claims of consumers being satisfied with the products ignored the poor claims performance of direct life insurance.<\/p>\n

\"AFA<\/a>
AFA CEO, Brad Fox<\/figcaption><\/figure>\n

The AFA said the short buying process and limited questions asked should set off alarm bells for consumers who may purchase a product that has not been underwritten, repeating its call that all life insurance policies should be underwritten at application.<\/p>\n

\u201cAs is often the case in life \u2013 if it seems too good to be true, then it probably is,\u201d AFA Chief Executive, Brad Fox<\/strong> said, adding that while direct insurance was easier to purchase it usually had a \u2018sting is in the tail\u2019.<\/p>\n

\u201cAs is often the case in life \u2013 if it seems too good to be true, then it probably is”<\/h6>\n

Fox said greater access to life insurance via the direct model had not resulted in a better claims experience and consumers remained unaware of what they have purchased, despite their belief it was suited to their needs.<\/p>\n

He also challenged the findings of a recent survey by Roy Morgan (see: Consumer Satisfaction With Life Insurance and Advice Declines<\/a>) that found high levels of satisfaction when accessing direct life insurance stating the survey failed to highlight the poor claim outcomes of direct life insurance.<\/p>\n

\u201cClearly, the consumer experience when purchasing direct life insurance may be perceived as better because the customer only has to answer a handful of questions, doesn\u2019t have to go through the underwriting process, can make the purchase via credit card and have immediate cover put\u00a0in place. But what have they actually bought? What happens at claim time?\u201d Fox said.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Association of Financial Advisers (AFA) has continued to criticise direct insurance stating claims of consumers being satisfied with the products ignored the poor claims performance of direct life insurance.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[282,8294,4],"tags":[],"class_list":["post-36285","post","type-post","status-publish","format-standard","category-associations","category-claims","category-products"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/36285","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=36285"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/36285\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=36285"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=36285"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=36285"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}