While some recent analysis has suggested consumers are best-served by having a risk adviser at claims time, new Roy Morgan research has portrayed low levels of consumer satisfaction with insurance purchased via intermediaries such as advisers and brokers.
The Roy Morgan data, released this week, will be particularly concerning to risk advisers where it suggests that consumers are most happy with their insurance purchases when they go direct via a branch office visit, telephone or the internet.
According to the Roy Morgan analysis, holders of risk and life insurance who purchased their insurance in person from an insurance company branch had a much higher level of satisfaction (76.4 per cent) than those using all other methods. It found purchasing directly from an insurance company online (74.9 per cent) or by telephone (71.9 per cent) also boosted satisfaction levels.
The analysis said that, by contrast, satisfaction with risk and life insurance purchased through insurance brokers was below average, at just 67.1 per cent and noting: “This is a concern as brokers are a major channel for purchasing this type of insurance and would be assumed to have a sound knowledge on the topic to best meet their clients’ needs”.
It said satisfaction levels were even lower among those who obtained insurance through employers, either as part of superannuation (64.1 per cent) or separately (61.6 per cent) but then added that, “of all the major purchase channels, risk and life insurance bought via an independent advisor/planner satisfied the lowest proportion of customers, at only 58.4 per cent”.
Commenting on the survey outcome, Roy Morgan industry communications director, Norman Morris said risk and life insurance continued to suffer from negative publicity including recent concerns by the Australian Securities and Investments Commission (ASIC) regarding poor practices in the industry and the need for increased scrutiny.
“Given all this negative publicity, it is not surprising that satisfaction with risk and life has decreased over the past year and remains lower than the other major types of insurance that Roy Morgan measures, including motor vehicle, household and private health insurance,” he said. Morris noted the low levels of satisfaction among those using an intermediary such as a broker or adviser and said companies needed to develop an understanding why this was the case.
