2016 was a tough year for the insurance industry. From public shaming of unscrupulous advisers, to price wars driving down premiums in some places while premiums shoot up four times the rate of inflation in other spots, there’s been a lot going on. A recent Roy Morgan survey added to the pile, with some less-than-welcome news for life insurance professionals.
Satisfaction with risk and life insurance has declined over the past year. It’s now at just 67.5%, down nearly 2% on last year. If you look closer at Roy Morgan’s numbers, only around a quarter (total = 24.3%) are actually ‘very satisfied’ with their life insurance[i].
So what’s missing? Well, Roy Morgan communications boss Norman Morris mentioned that “life insurance (has) suffered from some negative publicity lately, due to (…) inappropriate advice, complexity and understanding of policies linked to superannuation etc.” Which, thankfully, are things you can actually do something about.
One of the reasons people don’t understand their life cover (or don’t look in to it) is the complexity. Whilst there’s been a growing move towards plain English and user-friendly comparison tools, there’s still a lot of jargon and technical language out there. Earlier this year, a CEO of a major insurer told an industry publication that “I think our industry, for quite some time, has dined out on industry jargon and the more that we can do as an industry to actually demystify a lot of the acronyms and jargon that exist in our industry, the better off we will be (…).”[ii] He also pointed out that it’s clear where customers are getting turned off – it’s when they’re faced with massive 200+ page policies, even for simpler products.
Insurance and consumer comparison site iSelect recently released research that suggests only one in six Aussies have some form of life insurance outside their super[iii]. What’s possibly more concerning is that around half have only ‘a vague idea’ or ‘no idea’ at all about their level of cover. And only 43% are confident that their insurance would be sufficient if the event of death, serious illness or accident. In other words, there’s a big gap between what people have got, what they are aware they’ve got, and what they need. Consumers, advisers and brokers alike need something to bridge that gap.
That’s where Money101 can help. Our online education has been purpose built to demystify the way insurance works, from the bottom up. From the language to the products to the product combination strategies, we help your people put their needs and wants in context. And they’ll be better prepared to be engaged, satisfied consumers.
Have a quick look at some of our insurance units to see how it works. To discuss your organisation or practice’s unique education needs, start the conversation online or give us a call today.