'Direct life insurance is about customer choice', MLC says

Anand Thomas, MLC Life Insurance chief customer officer of bancassurance, digital & direct, told ifa that its decision to expand the distribution of its NAB Essential Life product via NAB’s 760 branches was about giving customers the choice in deciding what’s appropriate for them.

“Some customers might need to go to a financial planner and get more holistic protection, but some customers … just want access to the security of having life protection in a quick and easy way,” Mr Thomas said.

“When you look at the trends that are happening all around the world, in terms of digitising and so forth, customers are becoming comfortable with operating in that channel, and their expectations of wanting things being done in a simpler way is improving.

“It’s all about enabling that distribution channel to provide customers with that choice.”

As for how direct life distribution would work alongside MLC’s financial advice network, Mr Thomas said the initial decision would come from the customer before meeting up with an adviser.

“The banker would ask the customer whether they have a need to have life insurance,” he said.

“If the customer says yes, then we provide options to the customer. Would they like to make time to meet with a financial planner to go through a needs-based analysis and get a fully underwritten insurance product?”

MLC said in a statement yesterday NAB Essential Life will be available online, over the phone and in NAB branches.

Customers will be able to purchase the cover through “an easy and speedy application process without the need to consult a financial adviser or planner”, the statement said.

Adrian Flores

Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.

You can contact him on [email protected].