Consumers ‘unwilling to pay’ for risk advice: NobleOak

A large number of Australian consumers are unwilling to spend any money on an adviser for life insurance advice, according to research by NobleOak.

A whitepaper shows that 56 per cent of respondents stated they were “unwilling to pay anything for life insurance advice”.

It also found 72 per cent of respondents would be confident in purchasing a life insurance or income protection product online and without financial advice if the right resources were available.

NobleOak chief executive Anthony Brown said consumer buying behaviour is quickly evolving.

“In reality, we find many customers still like to talk to someone about life insurance and help them to apply,” Mr Brown said.

“While it may still be a while before this personal contact is replaced, there is no doubt we are in the middle of a significant shift in consumer behaviour.”

The whitepaper, titled ‘Life Insurance in Australia – Consumer Behaviour Transformation’, was based on a study conducted in December last year by research firm Pureprofile.

Over 1,000 Australian adults between 30 and 60 years old were asked about their research and buying behaviour with respect to financial services products.

In October last year, Mr Brown said customers with life insurance policies attained through advisers are “not getting good value for money” when compared to direct policies.

“We do think the industry is broken at the moment. It does need fixing and I know there are big changes but, if you go through advisers, you’re not getting good value for money,” Mr Brown said.

“A lot of direct opportunities are great value for money, and lapse rates are high.”

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