- \n\t\t
- Yes (80%)<\/small><\/div><\/li>\n\t\t
- No (18%)<\/small>
<\/div><\/li>\n\t\t- Not sure (2%)<\/small>
<\/div><\/li>\n\t\t<\/ul><\/div><\/div>\n\t\t\n<\/div>\nWill fewer life\u00a0companies operating in Australia translate into less competition and\u00a0disadvantage customers?<\/p>\n
Our latest\u00a0poll considers the question of industry consolidation.\u00a0 We are\u00a0seeking your opinion as to\u00a0whether you believe your clients will\u00a0be disadvantaged by less choice and potentially less flexibility that may result from fewer institutional players in the market.<\/p>\n
Our question is:<\/p>\n
Do you believe that more life company consolidation will have a negative impact on consumers?<\/em><\/strong><\/p>\n
At his company’s AGM last week, TOWER Australia’s Managing Director, Jim Minto<\/strong>,\u00a0raised his concerns about the \u00a0potential impact to consumers of fewer companies operating within the life insurance market:<\/p>\n
“The transformation of the market to fewer, larger players creates a concern that Australians will lose choice amongst life insurance providers as well as see a loss of independent companies and innovative solutions.”<\/p>\n
… large players with power can create reduced choice and higher prices<\/h6>\n
“We will potentially see Australians being offered higher margin products as a result.\u00a0 Life insurance is not a price and value sensitive consumer commodity product and large players with power can create reduced choice and higher prices,” warned Mr Minto.<\/p>\n
Others may\u00a0present an alternative\u00a0case\u00a0that consolidation, if managed efficiently, will lead to greater economies of scale, which could in turn have a positive impact on product pricing.<\/p>\n
Economies of scale may also allow investment in expensive, cutting edge, customer service technologies that may not otherwise be feasible (eg the next generation of electronic underwriting and online client management services).<\/p>\n
But advisers and dealers are at the sharp end of the life insurance\/financial planning market place and know their clients best.\u00a0 What is your view?\u00a0 Will more industry consolidation lead to a positive outcome for your clients?\u00a0 Or do you believe your clients intetrests will\u00a0best be\u00a0served\u00a0in their ability to choose between a broader array of life company ‘propositions’?<\/p>\n
Have your say…<\/p>\n
- No (18%)<\/small>
![\"Vote](\"https:\/\/riskinfo.com.au\/news\/files\/2009\/05\/vote-now.jpg\")
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