EasyCover goes online
Tower Life has launched what it considers the first life insurance product to be available online.
The new product, EasyCover, is an accidental death insurance cover available on-line direct to the public.
Tower Life strategy manager, risk business, Ron Williamson says the step into e-commerce follows speculation that Australia's life insurance industry is falling behind in e-commerce capabilities.
"Tower has recognised for awhile that the life insurance industry is behind the eight ball a little bit," he says.
Williamson says the oft-quoted saying that life insurance products are too complex to provide online is a myth. He says the product is easy to access and understand.
It offers customers a number of standard survey questions for them to register such as name, address and the amount of cover the customer wants. After a customer has registered, a premium is automatically calculated for them.
There is no underwriting for the product, and customers can choose any level of cover between $100,000 and $400,000 for $12 a month, depending on the level they choose. They can pay by credit card online or pay by cheque.
Williamson says EasyCover takes life insurance advisers and brokers out of the equation for many customers, giving them the choice of immediate insurance cover.
"The public generally expect that life insurance is sold through an adviser, and that its probably all about forms and underwriting," he says.
"By providing a product that takes away all the concerns we believe the client finds that appealing."
Williamson says the success of EasyCover will determine any future online products for Tower.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
