Brand trumps advice for life insurers

Mike Taylor

Managing Editor and Publisher

30 April 2024

The brand recognition of life insurance companies carries more weight that advice they receive, according to the latest research from Investment Trends.

The Investment Trends 2024 Consumer Insurance Needs Report has found that when it comes to selecting an insurance provider, brand strength prevails as a decisive factor, with consumers influenced more by brand recognition than by advice or premiums in their decision-making process.

Commenting on the research findings, Investment Trends head of research, Irene Guiamatsia said that in a market where 800,000 Australians are interested in Total and Permanent Disability (TPD) insurance, and 1.8 million are considering Income Protection insurance, the impact of a trusted brand could not be understated.

The research also restated the fact that most Australians do not recognise life insurance as being as important as other investments.

“Even with 34% of the adult population holding life insurance, it’s often seen as less integral than other financial tools,” Guiamatsia said.

“This underscores the need for the industry to bolster the perceived value of life insurance in one’s financial portfolio.”

According to the research, Zurich leads the pack with respect to Net Promoter Scores.

Guiamatsia said that with Zurich leading on client NPS and NRMA outperforming in life coverage satisfaction outside super there was a significant opportunity for life insurers to amplify their digital presence and user experience.

“Insurers are encouraged to heed these insights and align their digital strategies to meet the evolving preferences of consumers,” she said

The research also revealed that life insurance claims processing takes an average of 7.3 days within super and 5.1 days outside of it, while death benefit claims average around 10 days.

“Policyholders are clear in their desire for more straightforward and prompt claims processing. A seamless and efficient claims experience is vital for client retention and satisfaction,” Guiamatsia said.