In a recent LinkedIn post, Mr Marshall said there are consumer benefits to LIF, which can stem from insurers searching for new ways to attract customers thanks to their replacement business being reduced.
Insurers will start to look at “customer loyalty and engagement programs, additional and adjunct policy holder services, efficiency, simpler products, simpler underwriting, better adviser services that maximise adviser business efficiency and tools and resources that allow an adviser to engage their client more effectively,” Mr Marshall said.
“That combination can act to reduce acquisition costs, attract more Australians to insurance advice and build adviser businesses. As such, the benefit is more competitive (cheaper) premiums.
“Take away LIF and there is no reason to do any of the above (in an express manner).”
Mr Marshall also warned that it is crucial for both insurers and advisers to stray away from the status quo.
“Overseas players will line up and bring disruptive innovation and client engagement that will capture the attention and the wallets of Australian life insurance buyers,” he said.
“Customer benefits in this industry are there for us to lead and create. They are not for us to expect to be delivered without any change to what we do now.”
With respect, Mr. Marshall, I professionally disagree with your conclusion. After 40 years of both Life Office Management experience and life risk advising/consulting/selling for a living , I believe you conclusions are ill-founder and treat the systems not the true cause. As for the other comments, some are misguided, others just pure entertainment.
Craig Offenhauser
Andy, it definitely appears you are now thinking INSIDE the “Sweet Box” !
That’s right, lets get stuck into Andy for having a different opinion. We can banter about premiums going up, the FSC, it not being fair, no consumer benefits etc. but its going to happen. Minister Kelly O’Dwyer has again categorically stated “The government is very committed to these reforms. We’re not watering them down.”. I am not disputing your opinions, however I strongly agree with Andy’s view on the potential customer benefits… “Customer benefits in this industry are there for us to lead, and create, they are not for us to expect to be delivered without any change to what we do now.”. What are you going to do different in your business and for your clients? This is where I think everyone should be focussing their energy and not bashing the messenger.
Please state for me the benefits to consumers, all I see you saying benefits the insurer by making it easier for them to retain business and NOT be competitive.
When Andy was working at Zurich he was saying the opposite. I guess some people say whatever they are paid to say….As for cheaper premiums there is no hope of that and no hope of any consumer benefit in the current LIF. Like the FSC this individual is simply making up maybe’s for his new agenda.
What Andy actually said “Now, is it just me or where exactly are the premium savings going to come from? From the insurers willingness to lose even more money? I doubt it.” I read the article and Andy says no price reduction from reducing commission? He goes on to push a dream world where the FSC are actually considering working with Advisers moving forward (building greater efficiency). Which ties into what he is promoting, good luck to him. The fact is, still no benefit to consumer. Good try Andy, as if the FSC cares. Consumers are the losers big time.
Having spoken to many insurers, they have said that there will be no reduction in premiums from the introduction of LIF. The only way replacement business could reduce is if you are assuming there is substantial churn by advisers which is going to stop with the introduction of the 2 year claw back. The more info that comes to light, the more that has shown that churn is far smaller than initially estimated.
well I know One insurance company that is glad they don’t have this expertise in advise Anymore.!!!! This is an insult to a thinking person Andy
Yes I must be drinking the Kool-Aid. Price hikes in the DI space represent the consequences of a over featured product that is mis priced relative to the actual experience. Client benefit by reductions in term insurance and bundling discounts have all been very recent benefits passed on. Understanding that equation and therefore the need for simplified solutions in engagement product and process – are what will deliver long term client adviser and industry benefits
Andy, with all due respect this is the type of comment we expect from David Whitely. Totally off the mark, utterly baseless and pushing your own agenda. I expected better from you.
You are a mad man, the insurance companies have be racking up prices to consumers to the highest levels on record over the last 18 months in preparation for LIF; how naïve can you be? There are absolutely zero benefits for consumers in the LIF and it is about time the politicians understood that the LIF is just a massive profit play by the institutions, that is as far from the best interests of the consumer as you can possibly get.