Financial advisers need to dispel insurance myths: CommInsure
The financial advice industry is failing to do enough to convince consumers of the need for adequate insurance cover, according to Tim Browne, general manager for retail advice at CommInsure.
Speaking at CommInsure's insurance roadshow in Melbourne, Browne said financial advisers had an obligation make clients aware of the financial and personal cost of being underinsured.
Financial advisers need to arm themselves with the facts to dispel myths that clients will never fall ill, insurance was too expensive, and insurance companies never pay out claims.
Financial advisers know about all the problems, and yet talking about the issues of underinsurance was becoming a lost art, Browne said.
Consumers also need to be warned away from doing insurance themselves, as it would still not solve their underinsurance problems, he said.
CommInsure has implemented a new website for planners and increased the amount of data and marketing material online, and introduced a new range of courses within its Risk Sales Academy offered to financial advisers to increase their insurance sales.
They also announced widespread upgrades to its life insurance offering, including lowering work thresholds on income protection for part time workers, more cancer benefits, and adding 33 new occupations that are covered for income protection in the mining industry.
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The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
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