Insurance Business forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Levy removal highlights industry distrust

Notify me of new replies via email
Insurance Business | 10 Oct 2012, 12:06 AM Agree 0
OPINION: The fire levy removal backlash provides a salient demonstration of the deep-rooted distrust of the insurance industry. So what can be done?
  • Sam | 10 Oct 2012, 11:30 AM Agree 0
    There needs to be stronger communication with regards to cheaper is not always better. People need to be reminded that they may be saving money on premium's if they go with a direct insurer, however they will be out of pocket in the event of a claim. I suppose there also needs to be emphasis on the fact that insurance is a complex product, so why would you buy such a product from a company whose ad you saw on the television, where the transaction was made by phoning a call centre?
  • Leroy Bowmaker | 10 Oct 2012, 11:43 AM Agree 0
    It is a sad fact that the treatment of our industry is far from great. It is sad when you have worked so hard for your clients and the community as a whole, to have people who have no idea on what they are talking about make comments which are so aggressive towards our industry. Have you heard the Fire Service Add in regards to the removal of the FSL in NSW ? They state that families will have to pay another $300 in tax a year. No consideration towards how much people are actually paying now in terms of combination of taxation due to the effect of this levy. More concerning is the current agendas from NSW fire to close down unprofitable fire stations. Sorry I thought this was a basic right to have a fire service, however just as the Closure of the Perisher Station in summer months shows, no consideration has been given to the insurance industry in terms of the actual impact or otherwise of the service we are getting, and that the consumer is paying a fortune for now. What is of another concern is the lack of information the NSW fire has provided in terms of how much of the State FSL collected is actually passed to the stations to operate in the first instant.
    Whilst this is a much bigger issue, we need to start to promote all the good we actually achieve, the reality of the professional standards, and the number of people that we do actually help on a hour by hour basis. Maybe it’s time we demanded the respect we deserve, and just as Prof Allan Manning has, defend ourselves against the traditional onslaught.
  • Neil Tyler | 10 Oct 2012, 11:47 AM Agree 0
    I agree that the removal of the Fire Levy and to place the costs to the rate payer is a fairer and more reasonable funding criteria - you cannot opt out of rates/taxes, however you can opt out of insuring. My concern for all stakeholders is going to be the overall reduction in the GST and State Stamp duties that we be reflected in reduced incomes to both State and Federal Governments. Where will this lead?
  • Greg Cottrell - Insurance Professional Dinosaur | 10 Oct 2012, 12:22 PM Agree 0
    Following recent disasters in Australia there are numerous incidents of lack of "good faith" displayed in settlement of claims perpetrated by loss adjusters, their so called building experts, claim management companies - all on the payroll of the insurers who knowingly turn a blind eye as it saves them money.The policy contract and the rebuilding codes and regulations are being ignored. Insureds are blackmailed into excluding their representatives I.E. broker or own appointed loss adjuster, engineers and builders in order that they can con the insured into claim processes and settlements of their choosing, which lack any integrity and bordering on illegality. These practices not only impact on the individuals or business insured but the wider community - with the lack of competition in the insurance market in some areas of Australia, a handful of corporate loss adjusters, growth of direct sales through agents, a electronically dominated industry - the insurance consumer has no rights at all and this is being exploited by the ineptocracy generation employed by the big corporations who are limited and have no real competition.. Meanwhile the majority of insurance advertising by these companies is centred around making the insurance consumer look like dumb idiots because he didn't select their product. The industry has lost the skill of underwriting with community/commodity rating with increases in premiums willy-nilly across the board. We confuse clients with documents that mean nothing to them that are hundreds of pages long. The only competition in the distribution of insurance products has reverted back 40 years to a commission sales model based on price.
    This is just a scratch of the image problems this industry faces and why we are easy pickings for self interested political groups, politicians and media. AND YOU WONDER WHY WE ARE DISLIKED AS AN INDUSTRY..... LOOK IN THE MIRROR FROM INSURED"S PERSPECTIVE...YOU WILL FIND IT VERY CRACKED.
Post a reply