People who obtain life insurance via a financial adviser are more likely to be successful at claim time.
That is the bottom line of the latest data released by the Australian Prudential Regulation Authority (APRA).
The latest APRA Life Insurance Claims and Disputes Statistics for the September quarter revealed what was described as a “significant variance in the admittance rate between different cover types and distribution channels”.
The data revealed a variation from 99% (Group Ordinary Death and Individual Non-Advised Funeral) to 36% (Individual Advised Accident).
“Generally, Individual Advised business shows higher admittance rates than Individual Non-Advised for the same cover type,” the APRA analysis said.
It said this could be due to the policyholder having clearer expectations up front of what is covered by the product, or (related to the previous point) the adviser discouraging the policyholder from lodging a claim that is not covered by the policy.
The APRA analysis said the exception was Individual Advised Accident, which had an unusually low admittance rate.
Comments
This is further proof that so called "consumer groups" no longer act in the interests of consumers. The virulent anti adviser campaigns conducted by organisations such as Choice and CALC are doing consumers more harm than good.
The government and media need to wake up to the fact that these organisations have been hijacked by political wannabes who neither understand nor care about real consumers.
If you own a product you want consumer groups to help you eliminate competition (personal financial advice) because cover introduced via personal financial advice (as stated above) has more chance of being paid out at claim time and hurts your profitability.
Wake up. Advisers are the competition to product providers. All of them. They pretend to support you but are working out how to get by without you.
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