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Insurance Business | 29 Oct 2014, 08:35 AM Agree 0
An ASIC report has found that some insurers are giving sales staff limited training, focusing on sales techniques but lacking detail on product disclosure statements.
  • GJL | 29 Oct 2014, 09:36 AM Agree 0
    Just go's to show that Cash Flow underwriting is alive and well. It's also happening in Broking where the 'Nationals' are only concerned with 'shareholder return', both parts of the Industry are moving away from the core values of 'Underwriting & Claims' and 'Service & Value'
  • SJG | 29 Oct 2014, 10:15 AM Agree 0
    As an insurance professional with over 20 years experience I was appalled at the way I was treated by my home insurer recently in relation to a claim for damage to my home. A builder was appointed to make policy response decisions and when challenged could not provide meaning information as to policy terms and conditions. Referral to claim's staff for a review of the information provided was met with the same lack of insurance knowledge. Ultimately I requested the matter be referred to IDR at which time I was contacted by an employee from another part of the FSP organisation who admitted he had no General Insurance qualifications.
  • DSW | 29 Oct 2014, 01:21 PM Agree 0
    I am in the process of reviewing a number of direct insurers PDS's and note that there are substantial variations between the different levels of cover offered per insurer let alone from one insurer to another.
    With PDS's ranging from around 60 to 160 pages, I can guarantee a prospective client without a background in insurance or the law would never be able to clearly understand the level of cover they were buying or whether this cover is appropriate for them.
    Add to this a general lack of product training in the insurer call centres as identified by ASIC and proven by some calls I have made and you have all the ingredients required for the insurance industry to continue to be criticised for its ongoing lack of professionalism.
    As an example I was advised by one insurer that the Home policy I was interested in covered Strata properties. This was plainly incorrect but it took two levels of supervisor referrals before I spoke to a senior manager who admitted the advice I had received was incorrect.
    The aggregator call centres are as bad, if not worse. Everything is about price and you are left with the impression, if you believe their staff, that all insurance is the same, only the price differs.
    I have worked in general insurance for many years and I despair at its current direction. Regrettably the Fed Govt appears to be out of touch with what is actually happening on the ground. Hopefully this ASIC Report will give them pause for thought about some of their recent announcements.
  • Robert Cooper | 29 Oct 2014, 01:49 PM Agree 0
    A value I hold dear to me is to be a trusted adviser to all my clients. Many of my fellow Brokers are of the same opinion about why an Insurance Broker adds value to any business.
    While we have long accepted in the direct market there is a point of difference with Personal Lines Insurance and Business Insurance which is based on price and advice. However, we are now seeing the likes of Youi, AAMI and GIO all offering business insurance on the same basis as they do for Personal Lines. When are the regulators going to put their foot down on the lack of advice given by the direct market? Is it left to the likes of Brokers to continue to battle to promote their value? Then we have the situation that some much larger Brokers and their cluster groups are looking to compete on the same basis as the direct market and offer only price driven take it or leave it one market policies without advice.
    Eventually we all get tainted by the same brush when the consumers start complaining.
  • Really? | 29 Oct 2014, 04:30 PM Agree 0
    Why am I not surprised and let me guess many of these are the same insurers bagging aggregators because they don't provide informed opinions - well looky here, neither do insurance sales staff and as Robert points out - its no longer domestic lines, its creeping into SME commercial products
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