A group of advisers have responded to comments from NobleOak chief executive Anthony Brown, saying he has made a “sweeping generalisation” that is contrary to recent findings from ASIC.
Mr Brown said at the Strategic Insight’s Direct Life Insurance Awards on Tuesday that customers with life insurance policies attained through advisers are “not getting good value for money” when compared to direct policies.
The story generated disappointment from commenters on the ifa website, with one response calling Mr Brown’s comments “uninformed, irresponsible and silly”, while another said it “does not deserve a reply”.
“How does providing cheaper premiums, better definitions, upfront advice, ongoing service and claims help qualify ‘as not good value for money’ when using a professional adviser?” one commenter stated.
Speaking to ifa, Houghton Strategic Solutions director Melinda Houghton said that the findings from the recent ASIC review into the life insurance industry show that claims handling within direct insurance is not as good as the handling for advised insurance.
“If you’re going to say that something is a waste of money, you would also say that paying a premium for something that doesn’t pay out as often is more likely a waste of money," she said.
“The most recent research is showing that advised insurance is cheaper and pays out more often.
“We’ve actually got ASIC backing us up, and we’ve got statistics to show that advised insurance is better for consumers."
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].
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