{"id":38432,"date":"2017-09-26T10:32:43","date_gmt":"2017-09-26T00:32:43","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=38432"},"modified":"2017-09-26T22:08:46","modified_gmt":"2017-09-26T12:08:46","slug":"consumers-unwilling-to-recommend-insurers","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2017\/09\/26\/consumers-unwilling-to-recommend-insurers\/","title":{"rendered":"Consumers Unwilling to Recommend Insurers"},"content":{"rendered":"<p>The lack of trust in life insurance by Australian consumers has come about because of a misalignment of interests that began with the demutualisation of the life insurance industry over 20 years ago, claims PPS Mutual Chief Executive, <strong>Michael Pillemer<\/strong>.<!--more--><\/p>\n<figure id=\"attachment_33935\" aria-describedby=\"caption-attachment-33935\" style=\"width: 151px\" class=\"wp-caption alignright\"><a href=\"https:\/\/riskinfo.com.au\/news\/files\/2016\/07\/MichaelPillemer-cropped.jpg\" rel=\"attachment wp-att-33935\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-33935\" src=\"https:\/\/riskinfo.com.au\/news\/files\/2016\/07\/MichaelPillemer-cropped.jpg\" alt=\"PPS Mutual, CEO, Michael Pillemer\" width=\"151\" height=\"180\" \/><\/a><figcaption id=\"caption-attachment-33935\" class=\"wp-caption-text\">PPS Mutual, CEO, Michael Pillemer<\/figcaption><\/figure>\n<p>Commenting after the announcement of the sale of CommInsure to AIA Australia (see: <a href=\"https:\/\/riskinfo.com.au\/news\/2017\/09\/21\/comminsure-to-be-sold-to-aia\/\" target=\"_blank\">CommInsure to be Sold to AIA<\/a>), Pillemer said this misalignment has led to consumers becoming unwilling to recommend a life insurer to a friend, according to Net Promoter Score (NPS) data collected by Roy Morgan.<\/p>\n<p>\u201cThe core problem is that most insurers are listed companies which place shareholder interests above the needs of their insured customers. Thus, there is a significant misalignment between shareholders\u2019 and policyholders\u2019 interests and because of this, many insurers aren\u2019t well trusted and aren\u2019t seen as making appropriate decisions,\u201d Pillemer said.<\/p>\n<h6>&#8220;&#8230;most Australians would not recommend life insurance companies&#8230;given the perceived self-interest of these organisations&#8230;&#8221;<\/h6>\n<p>He added that as the number of life insurers becomes more concentrated improving consumer trust was the biggest challenge facing the life risk insurance sector and the use of NPS data, which indicates how likely consumers would be to recommend an insurance company, shows most Australian insurers have a negative NPS score<\/p>\n<p>\u201cThis reflects the tarnished reputation of the industry and also that insurance is a grudge purchase,\u201d Pillemer said, adding these views had been strengthened by perception the largest life insurers have unfairly rejected claims.<\/p>\n<p>\u201cThe fact is, most Australians would not recommend life insurance companies and their policies to a friend given the perceived self-interest of these organisations,\u201d he said.<\/p>\n<p>Pillemer recommended life insurers adopt the use of NPS as an objective measure of an insurer\u2019s reputation and to address the recovery of trust and reputation.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The lack of trust in life insurance by Australian consumers has come about because of a misalignment of interests that began with the demutualisation of the life insurance industry over 20 years ago, claims PPS Mutual Chief Executive, Michael Pillemer.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,4,270,5],"tags":[],"class_list":["post-38432","post","type-post","status-publish","format-standard","category-general","category-products","category-remuneration","category-services"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/38432","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=38432"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/38432\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=38432"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=38432"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=38432"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}