ISI seeks feedback on improved Replacement Policy Advice
The ISI has released its improved Replacement Policy Advice brochure and form following consultation with adviser groups and it is now asking for wider industry review and feedback.
Wednesday, September 22nd 2010, 3:45PM 
2 Comments
by Jenha White
When the new Replacement Policy Advice Standard came into effect on 1 July, it stirred debate.
The ISI promised to engage in consultation with adviser group representatives and it says significant improvements have been identified with both the brochure and form as a result.
ISI communications manager Stephen Leslie says it was clear from the initial feedback that while the principles embodied in the Standard were sound, the Association needed to improve the way it was presented to customers.
"The intention of the consultation was to ensure these documents provided better balance and met the needs of customers, advisers and the industry."
For example PAA chairman Peter Leitch said in July of the old form "We should be telling the public about the significant amounts of money that are paid out in claims each day due to people being insured against the risks of death and disability, not just giving examples of where claims are not paid."
This is a noticeable change that has been made in the new Replacement Advice brochure, which firstly states that around 97% of all claims are accepted and paid without any question or further inquiry. It then says of the remaining 3% of claims which are investigated or declined mistakes are often made when a policy is replaced.
Stephen Leslie says the process the ISI has gone through with the various adviser representative groups has been open and honest and a lot of common ground has been found.
"The final step is to give everyone an opportunity to provide their thoughts before we launch the Replacement Policy Advice brochure and form."
The new documents have now been posted on the ISI website (www.isi.org.nz) and a link to both documents is provided on the home page under the heading "Replacement Policy Advice - Public Consultation".
ISI intends to leave the documents on the website for public viewing until Wednesday, 29 September with feedback welcomed up until 5pm on Friday, 1 October.
While the timing means the new Standard will not be in force by 1 October, ISI believes it is more important to get the process right.
"Delivering an improved process that everyone is comfortable with is worth delaying the launch by a few weeks," says Stephen Leslie.
Jenha is a TPL staff reporter. jenha@tarawera.co.nz
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Comments from our readers
If the issue involves less than 3% of claims made, then that is GREAT News for the Advisor market, as we are doing what is right by our clients 97%+ of the time, AND WE CAN BE PROUD OF THAT.
Yes lets see some Positive promotion on insurance from the ISI, and encourage people to talk to their Broker so they can share in our 97%+ success rate on claims !!
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A laudable success that should be the lead line in any discussion about insurance. But is it, no sadly the 3% of claims that fail seem to be the driver for a massive amount of negative media on a weekly basis and now the ISI is leaping into the boat with a new business replacement brochure and process that casts further doubt on the the claims process and the very people that are the back bone of the distribution system. (Question- What percentage of the 3% are failed claims due to churn?) Yes the revamped brochure has had the edges knocked off from the first draft but really the whole project is still about churn and not client awareness and the ISI continues to pay lip service to the nonsense that it isn't their members who actively drive all the churn themselves. There hasn't been one company that I have an agency with today that hasn't approached me with a marketing idea that involves moving large numbers of clients from the clients existing insurer to themselves. Nearly all companies have transfer term forms and short form applications ready for signing. So please can we move on.
If the ISI would like to unlock more new business I suggest they get off the knockers bandwagon and start using some of their considerable resourse, budget and clout to start countering the constant negative attention seeking noise generated by the media to sell their advertising space.
Instead of wasting their time and money pretending to be regulators the ISI should be the champions of the good news that is insurance and help to rebuild the confidence of New Zealanders in a product that daily save lives. Come on ISI let's market the 97% and let the 3% look after its self.