Reputation, innovation and underwriting key to securing life business
Insurers can help stem the loss of new business by addressing issues around reputation, product innovation and underwriting, claims Beaton Research & Consulting senior account director John Morrow.
Friday, September 14th 2012, 11:58AM
by Benn Bathgate
Additional data released from Beaton's Benchmarks adviser survey revealed nearly half of advisers, 47%, said they had started using a new life insurance provider in the last year, up from 23% in the 2011 survey, while just over a third, 36%, have stopped writing new business with an insurer in the last year against just 16% in 2011.
"Not surprisingly, Partners Life has been the clear beneficiary of the recent movement in the market and the study data shows it is regarded as the main provider overall for most of the life risk products written by financial advisers," Morrow said.
The 2012 survey also revealed a number of shifts in the key drivers that determined adviser satisfaction with insurance providers, with supplier reputation the most important factor determining overall satisfaction.
"Observations of the data suggest that the changes in drivers of overall satisfaction and market preferences in general are due to the strong influence Partners Life has had on financial adviser perceptions since entering the market," Morrow said.
He said that while the emergence of Partners Life had "without doubt had a detrimental impact on financial adviser preferences for many of the life risk players in the New Zealand market," rival insurers still had a number of competitive strengths as well as established and loyal adviser relationships.
"Reinforcing these perceived strengths and addressing reputational, product innovation and underwriting areas will help address any potential losses in new business in the future," he said.
Benn Bathgate is a business reporter for ASSET and Good Returns, email story ideas to benn@goodreturns.co.nz
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