Competition drives life insurance innovation
The high level of competition between life insurance companies has resulted in innovation in products, underwriting, customer service, and adviser training, according to Strategic Insight.
Speaking about the Association of Financial Advisers (AFA) / Strategic Insight (SI) Life Company of the Year Awards, SI’s head of sales, marketing, and product development, Rael Solomon, said health and wellness had become a major theme and was already playing a part in benchmarking.
BT Financial Group (BTFG) won the Overall Platinum award for the second time. TAL, MLC, and OnePath were named as runner ups.
BTFG also won the income protection award for its BT – Income Protection Plus Plan product.
AFA chief executive, Brad Fox, said: “These awards are designed to encourage life insurers to invest in product and service innovation and to strive for excellence so that financial advisers can offer their clients the best possible risk protection”.
He noted that financial advisers arranged half of life insurance in Australia, and $5 billion of the total $7.2 billion in claims was paid to clients of financial advisers.
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Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
