Calls to level the sales playing field
ASIC's recent rapping of Woolworths over it's misleading car insurance advertising has put the spotlight back onto direct sales tactics. Kate Fairley, CEO of Get Informed, shares with us her insights.
Video transcript below:
Anna Temple, Insurance Business Online
Anna Temple: ASIC’s recent rapping of Woolworth’s over its misleading Car Insurance Advertising, has put the spotlight back on to direct sales tactics. Kate Fairley, CEO of Get Informed thinks the case finally highlights shortcomings in many direct insurers’ offerings and urges brokers to take advantage when dealing with consumer clients.
Kate Fairley, Get Informed
Kate Fairley: I think it’s really positive specially from the brokers perspective because we have had a lot of media in the industry lately reporting fraud on the brokers’ side of things, which is unfortunate but it’s reassuring for brokers to understand that ASIC really is out there protecting consumers from these direct insurance products. It’s great that this has been done now and it’s upto brokers to actually leverage this example and get it out there to their customers and say. “look Woolworths has been caught out in this instance, because of their advertising and this isn’t the only product you should be concerned about”.
Anna Temple: Fairley, would also like to see legislation that would level the playing field between brokers and direct insurers as well as ensure consumer is protected.
Kate Fairley: Consumers have got, they have got no idea what Insurance means or they don’t know what to look for. As a broker we know what they are missing out on, but it’s communicating that to the public. They think that we are just comparing apples with apples especially when you have got websites like Iselect and compare the market coming up, they think that they are just comparing products which are all the same. I’d like to see the Government bodies put forward regulation to bring that to the direct Insurance market as well, so they have more of a responsibility to inform consumers that they might be missing out on products features which are hidden in the 40 to 50 page document. So, whether that’s enough for a checklist of things that need to be compared that is still up for debate.
Anna Temple: Finally, Fairley urges brokers not to give up on domestic Insurance, but to instead work to really pinpoint differences in policy detail that will really benefit their clients.
Kate Fairley: I think brokers have gotten into this trap where they think domestic Insurance products are just wasting their time, because they are being contacted day in day out by consumers questioning a 50 to 100 dollar price difference. They have got, they have been online and they have compared their home insurance products and then they are calling their broker to say why is this cheaper? But I think it’s still important that they don’t disregard domestic insurance, that they still have that information handy and they make sure they have got the relationship with their client and just pinpoint a couple of key issues which are relevant to them. So, there is sporting exclusions on recreational sporting activities. If you know your client goes and plays Golf for the weekend, just let him know that he is covered for that if he injures somebody in the process, under his brokered policy vetting, but if he went to a direct Insurance Company that wouldn’t be covered because there is a blanket exclusion on recreational sporting activity.
Anna Temple: This is Anna Temple reporting for Insurance Business Online.