Real Insurance
"I receive a phone call yesterday on my mobile. A female with an accent identified herself as calling from what was obviously a call centre and asked me if I had any life insurance.
Philip Burke
“Yes” I said. She then asked if I would like her to give me a premium quote. She, in so many words, said it was up to me whether I changed my insurances or not but asked if she could quote for me.
“Where are you from, again”? I asked and she identified her company again.
“Can you tell me your first name” she said. “Hang on’ I said, you’re ringing me. Don’t you know who I am”?
“No, I just have a phone number on my screen. The computer rings that number for me. I don’t know who you are.”
“You are you calling for”?
“Real Insurance.” she answered.
“No thank you.” I said and hung up.
So it seems that Real Insurance has moved from direct marketing to cold calling.
Think for a moment how this approach on a cost basis only might affect some people who on this basis alone may replace a policy with something that is cheaper but vastly inferior.
How many people understand that these companies do not underwrite at point of sale but at claim time?
The chance of an existing policyholder who thinks they are getting like for like and saving money at the same time being refused a claim, goes up dramatically.
The chance of misrepresentation, innocent or not, is certainly increased where a call centre, paid on a success basis, is aggressively marketing a no advice insurance product.
ASIC is accusing advisers of churning insurance business and introducing laws to try and curb it. Here we have a company actively attempting to replace policies, with no advice, and they don’t even raise their collective eyebrows.
"