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Insurance Business | 11 Mar 2014, 08:55 AM Agree 0
The former boss of an insurance company is at the forefront of a group buying campaign to cut soaring premiums – and several insurers have already expressed interest in signing up.
  • kevin | 11 Mar 2014, 09:43 AM Agree 0
    What Licence do they operate under?
  • Karen | 11 Mar 2014, 09:44 AM Agree 0
    Beauty, yet another aggregator....just what the industry needs. It will be interesting to see the end result and the supporting insurer/s. We, brokers, may have to review our allegiances.
  • Channelle - Urban Insurance | 11 Mar 2014, 09:56 AM Agree 0
    This is just becoming more and more ridiculous! This is why I limit the amount of house and contents business I write as we will always be in competition with direct insurers.
  • Vic Broker | 11 Mar 2014, 10:17 AM Agree 0
    I wonder if this JV has PI cover for when claims start getting knocked back....

    Also, seems like a bit of anti-selection targeting people who don't have cover or can't afford good cover.... Just sayin'
  • Jak | 11 Mar 2014, 10:24 AM Agree 0
    Wooohoo !!!

    An insurance 'insider' working to reduce premiums, "...spurred on by rocketing premiums which it says has left 83% of Australians under-insured. It says 'Australians are now in the grip of a home and contents Insurance affordability crisis', and highlights that home insurance premiums as having risen by 57% on average over the past three years and contents insurance haven risen by 18% on average over the past three years, but wages have only grown by 10% in the same period...".
    For starters, wages for the general insurance industry, and some sectors in particular, have not increased by 10% - especially for those employees whose jobs have been lost due to off-shoring...
    But lets hope the price 'war' also comes with compulsory consumer education - you know, the simple stuff like reading the PDS and not treating an insurance contract like icecream packaging (it looks like what I want and need, and the advertising tells me it tastes absolutely irresistible...), or even getting some qualified legal advice about purchaing a contract - similarly to when one purchases a house for instance, or a business...
    But, I am demonstrably on drugs. Consumers as vicitims, now being perpetuated (and in some cases turned into an art form) by the very insurers which complain bitterly about how poorly they are perceived in the market.
    Here's the rub: no insurance = no business, no commerce, no housing, no lending, no professions, no life as we know it, but no worries, no one seems to care
    Humbug.
  • Scott | 11 Mar 2014, 10:52 AM Agree 0
    This actually seems a pretty great idea. It uses the same logic as CQIB, Steadfast & the like to try to get a better offer.

    And in fairness, home insurance costs really have gone up - whether you're in a "safe" area or a "danger" area.
  • Suspicious | 11 Mar 2014, 10:55 AM Agree 0
    So let me get this right. One Big Switch creates a client pipeline by going to the media off the back of an anti-insurance 'rip off' campaign and asking people to 'sign up' to collectively get a better deal - hoping to get 25,000 punters on board. Once the deal is struck, it gets a commission from whatever provider it places the business with, which it then uses to pay a portion to its partners (including News Corp media)...
    Surely no insurer would undercut a product offering it is already providing to its brokers, banks or its clients...considering the whole motivation focuses on price.
  • Stuart Redmond - IIS | 11 Mar 2014, 11:11 AM Agree 0
    Is this not what normal broking houses either do or could do? I've worked with two International Broking firms that both did this. Sorry but the idea is not new and I fail to see what benefit would come of it. Insurer's are only after the business so of course they will express interest. Also agree with Karen and Channelle.
  • The Oracle | 11 Mar 2014, 11:31 AM Agree 0
    What did the American Circus showman PT Barnum say? Ah yes, that's right: "There's a sucker born every minute."
  • geoff grimshaw | 11 Mar 2014, 11:34 AM Agree 0
    If this was life insurance it would be "churning" which ASIC is up set about. But because it's home and contents it's ok, come on get real. The amount of exclusions, red tape that you need to go through and this new marketing company and the insurer will rely on General Advice. Come on ASIC get your act together and monitor this if not you and FOS will be "flooded" with complaints. Insurance is not always about price, it's about paying genuine claims
  • The West Australian Perspective | 11 Mar 2014, 12:04 PM Agree 0
    Once upon in Far Away Insurance land people actually understood the concept of what the fundamental drivers of insurance premiums were. It appears to me that we as an industry have lost this most basic concept when we allow this sort of thing to gain traction.

    David Issa should hang his head in shame as an ex-industry professional for spruiking this nonsense, but of course he wants this as it gets them the media coverage they need.

    At the end of the day this is just another example of the smoke and mirrors that people use to flog something to the average uninformed consumer who is only interested in price, not cover.
  • Scott | 02 Apr 2014, 12:34 PM Agree 0
    Some highlights of the deal they found (with Coles):
    - Defined Events only (AD optional for contents cover)
    - Efficacy exclusion on theft & malicious damage
    - No water damage cover if it came through an existing opening (eg: open window), or if the drainage/sewerage system is 'inadequate'
    - Limited water damage cover for outbuildings
    - Total exclusion for water seeping through roof, floor & walls
    - No liability cover for your pets if they are not a cat or dog (eg: chickens, birds, hamster)
    - No building cover for sheds/coops/etc that could be considered "hobby farm"
    - No building cover for pontoons/jetties
    - "Emergency" repairs must be done by Coles
    - Limit of $5,000 contents cover for electronic goods including computers & mobiles
    - Limit of $1,000 contents cover for DVDs & software
    - Limit of $1,000 of jewellery &watches
    - No automatic away from home cover
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