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Insurance Business | 16 Jul 2014, 08:29 AM Agree 0
The Financial System Inquiry has identified the insurance industry’s two biggest gripes, suggesting potential solutions for one of them and seeking more information on both.
  • Anthony K | 16 Jul 2014, 09:49 AM Agree 0
    A race to the bottom driven by the aggregators will do nothing to keep the sector sustainable. Pay peanuts, get monkeys is the old saying. There will be little to no value to any stakeholder as a result. Be careful what you wish for...
  • broker | 16 Jul 2014, 09:55 AM Agree 0
    We already have aggregators, they are called Brokers and compare price and product forcconsumers.
  • Mark Dalton | 16 Jul 2014, 10:02 AM Agree 0
    Seems to miss that aggregator business models generally require financial payment from insurers - for leads and/or clip of premium
  • Richard T | 16 Jul 2014, 10:15 AM Agree 0
    Why is the general insurance industry so afraid of transparency?
  • Robert Cooper | 16 Jul 2014, 01:00 PM Agree 0
    It seems to me that while Insurance Brokers and Financial Planners have enshrined by regulation that we always have to act in the client's best interests. Yet these aggregator systems do not have that same duty as it still relies on the client to "read everything" and not receive personal advice for their situation. Then when a claim occurs, they are on their own. .

    Ultimately it is the insurer who takes the risk and not the aggregator. Some Insurers are quick to avoid claims where possible. What will the aggregator do about this? Nothing. They cannot afford to fall out with the insurer using their system.

    Some clients will fight it through FOS, some will not and simply accept that the Insurer has rejected what quite possibly could be a legitimate claim.

    It ultimately taints our industry.

    If aggregators just stuck to Private Motor Insurance, then fine, but anything else, the Consumer will ultimately lose due the complexity of Insurance contracts and how claims officers may consider the claim differently to the consumer's expectations. You only have to go back to the Brisbane Floods of 2011 to see examples of this.

    Aggregators may be the way of the future, but they need broad scrutiny by Insurers, and the regulators along with a level playing field on always acting in the client's best interests.
  • Mark Dalton | 16 Jul 2014, 01:51 PM Agree 0
    Experience in Aust and UK, consumers (personal and small business) mainly use aggregators (aka comparison sites) as alternative to shopping around when buying direct. Consumer contracts with insurer not the agg - most consumers don't even remember which agg they used.
    Brokers in Aust and o/s are already working this to their advantage by providing a broking type service through on-line facility.
    Insurers should work with brokers to deliver this.
  • Scott Robertson | 17 Jul 2014, 11:27 AM Agree 0
    Great comment by the reader "broker." Love it.
  • David Stott | 17 Jul 2014, 12:03 PM Agree 0
    Technology & consumer interest will no doubt ensure that aggregator type sites are going to be a part of the insurance distribution landscape (I'd set one up myself if I had the time, money & lack of interest in the policy holders welfare). It's unlikely that the regulators will require a warning to be provided to shoppers about the dangers of buying solely on price though. Given that aggregators will live on the web & feed on certain key words then perhaps the adviser side of the industry needs to have a collective web based response to those same key words. I'm not sure exactly what that would be but I'm sure we've got some smart cookies out there within the industry associations & most of us advisers have our own websites that could play host to that collective response (if that kind of linking still holds weight with the search engines). There are many 'find an adviser' sites out there but at the end of the day the consumers using the aggregators are not looking for an adviser they are searching for cheaper insurance. We need to play the same word game & respond with "cheap home insurance - what you should know".
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