I’ll have my life insurance to go, thanks
A group of financial planners in Mexico are completing life insurance sales within 15 minutes of a client walking through their door, according to CommInsure business growth services executive manager Jeffrey Scott, who spoke at the Dexx&r adviser life risk conference yesterday.
They do this by using electronic applications that are e-mailed to head office, put through an underwriting system, and sent back as a policy document before the client has even finished their coffee.
Scott believes that if Australia’s advisers could replicate this model of efficiency, the nation’s life insurance gap would close.
“If we want to get rid of the underinsurance issue in Australia, we need to make insurance easier to get,” he said.
“If we can get insurance to be an impulse buy, we will get over this.”
He added that the UK was experiencing the same problem with less than one in 10 people adequately insured.
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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.
