Listening to consumer and adviser demands and embracing technology have been the focal points for the top life companies in this year's Money Management/Dexx&R Adviser Choice Risk Awards, writes Angela Faherty.
Specialisation and relationship management have been the key focus for life companies in the past year.
Following the onset of the global financial crisis (GFC), market dynamics have forced the hand of many industry players to ensure they keep up with the changing demands of advisers and clients.
Yet despite market pressures, the life insurance market has grown over the last year, with figures from Plan For Life showing continued growth in the sector to March 2010.
Overall, life insurance premium growth increased by almost 11 per cent in the year to 31 March, 2010, according to the firm, while the group risk market saw a drop of 32 per cent.
Growth in the sector is expected to continue, with Tower Australia citing the life insurance market as one offering significant growth potential going forward, with forecasters projecting the market trebling in size to $22 billion by December 2017.
Expected growth in the sector is excellent news given the underinsurance issue in Australia, a problem that certainly needs addressing and with heightened awareness among consumers about the need for protection following the GFC, the future looks bright for the life risk market.
The Money Management/Dexx&R Adviser Choice Risk Awards commends the high achievers in the risk space in 2010.
Risk Company of the Year: ING Life
ING has been named Risk Company of the Year in the 2010 Money Management/Dexx&R Adviser Choice Risk Awards, an achievement ING general manager of insurance Gavin Pearce attributes to the firm’s overall level of commitment to providing advisers and consumers with a complete offering that encompasses technology, support services and product enhancements.
“We believe we have a leading product and continue to enhance this to match the individual needs of our customers,” Pearce says.
“It is the total offering that we believe makes us successful and this is driven by customer and adviser research and our promise to deliver on the findings.” The win clearly shows ING Australia has been successful in its aims to satisfy the needs of advisers and consumers over the past year.
As part of its business plan, the firm has bi-annual advisory boards where advisers can set the agenda for discussion and areas such as product feedback, technology and service and potential ideas are put under the spotlight.
Similarly, its adviser events, which are held quarterly with the management team in attendance, are a combination of company and product news, allowing for closer interaction with the advisory community. “We do a lot of research with advisers and customers and I think this helps us stay on top of our game,” Pearce says.
If there has been a silver lining in the GFC cloud, it is the growing awareness of the need for risk among consumers, Pearce says.
“The current economic climate has seen an increased number of people become more aware of what could go wrong and, as a result, more people are seeking advice in order to protect their needs,” he says.
“The fact that a lot more Australians are beginning to realise their family and loved ones need to be protected in the event of injury or death is a move in the right direction for the insurance industry as a whole.”
Pearce says as a result of increased consumer interest, ING has moved to create additional material for consumers using simpler language. The aim is to help raise awareness among consumers so they can get a better understanding of the need for risk products.
Silver: Asteron Life
Relationship management and specialisation and focus have been the driving forces behind the success of this year’s runner up, Asteron Life. Since repositioning the business model to focus solely on life insurance, the firm has secured strong ties with the adviser community, a matter it considers key to its success.
“There are two reasons why we are garnering great momentum in the IFA [independent financial advice] market,” says Geoff Summerhayes, chief executive at Suncorp Life.
“The first is a combination of specialisation and focus, relationship management and product innovation. All of these are essential to achieving critical success in the IFA market.
"The second is the significant changing market dynamic being brought about by consolidation and regulatory reform, which is driving change in the advisory market.”
Summerhayes adds managing relationships with advisers is crucial to tapping into the needs and requirements of the IFA community and its clients.
He says product changes and innovation are all driven by feedback from advisers and working with them is crucial to keeping on top of market changes.
“There has been a lot of change in the market over the last few years,” Summerhayes says.
“Feedback has shown us that the IFA market wants to establish partnerships and solid relationships with specialist companies and, therefore, we need to provide this support,” he adds.
Bronze: Tower Life
Insurance giant Tower Life has secured bronze in this year’s overall Risk Company of the Year category.
It’s been a busy year for the firm following the launch of its Accelerated Protection product, the result of an amalgamation of three separate legacy product lines swept into one overall solution.
Tower managing director Jim Minto believes the firm’s hard work has paid off. “It’s been a lot of hard work but the product has been well received and is seeing very high levels of growth,” he says.
Tower Life has always been considered one of the big market players, so developing a solution to meet the needs of the changing business environment was crucial.
“The current business environment is good for the life insurance market. There is an increased understanding of the importance of life insurance and the need for financial protection. People are starting to recognise their greatest asset is the ability to earn an income,” Minto says.
Minto adds technology has been at the heart of the firm’s product overhaul and is a reason behind its success.
“We have been investing heavily in technology and employing it in a way that provides greater flexibility for advisers.
"There is a 24-hour application facility allowing advisers to complete forms when it suits [them] and the quality of the rules engine underpinning the underwriting process means some applications can be completed instantly,” he says.
