tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Saturday, July 11th, 12:05PM

Insurance

rss
Latest Headlines

It's time we got out and told the good story about insurance

Russell Hutchinson takes umbrage with the media bashing insurance; and says it's up to advisers to get out and tell the story.

Monday, February 3rd 2020, 11:43AM

It is very depressing to see this tone set in the media. The headline above seems to be the starting point for any article on insurance these days.

For example, in an article on travel insurance coverage and the impact of the coronavirus, the headline was: “Insurance may not pay out for coronavirus.”

The headline makes it sound like if you catch the virus your treatment would not be covered, but it would. It could be interpreted that if your flight was cancelled then you might not be covered. But you would be.

The only circumstance the insurer mentioned in the article was if you had booked travel after the virus was known to be spreading and you have merely changed your mind. Travel insurance doesn’t cover changing your mind – which I think is fair enough.

But some journalists don’t.

The industry has problems. Tainted by reports from Australia about "junk insurance" emerging from the Hayne Commission investigations, we have now had a report from our own Reserve Bank which raised questions about the claims payment ratio.

Clearly, the efficiency of the industry is in focus. But people do not buy “insurance” from “the industry.” Instead, clients buy a specific product from an individual insurer.

There are plenty of products from insurers that have higher claims payment ratios. What’s more, I know insurance is the only way to create an estate of hundreds of thousands of dollars for a young family from just a few dollars a week.

I know that financial risk transfer is the only way to provide any meaningful protection for most catastrophic risks for all but the richest people in New Zealand. You know that too, of course.

Most of the insurance on sale is of good value. But consumer-focused media aren’t there to tell our story.

They are there to shock, make people click through to an article, to raise their blood pressure a bit. Heck, if it creates the interest necessary to tackle issues like insurance law reform, and the challenges in income protection that have bedevilled us for years, I shall be very happy about it.

But that leaves it up to us to tell our story. It’s “ours” of course, only to the extent that we share a goal.

I am positive about insurance. I want people to know that it’s a viable solution to the problem of financial risks. I want them to have their families protected.

But the story doesn’t just tell itself. We have to tell it.

Tags: insurance Russell Hutchinson

« 5 trends to include in your advice service planningThe struggle to be better at telling the story of insurance »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
Insurance Briefs

Less stressed during lockdown
New Zealander’s health and wellbeing had surprising benefits from the Covid-19 lockdown.

Southern Cross supports new safe haven for at-risk pets
Southern Cross Pet Insurance has teamed up with Pet Refuge to provide temporary shelter for animals affected by family violence.

nib Foundation supports Lifeline to the tune of $150,000
To support the growing mental health needs of Kiwis emerging from the Covid-19 pandemic, Lifeline Aotearoa has increased its service capacity thanks to a $150,000 grant from nib foundation, the charitable arm of nib New Zealand (nib).

Southern Cross halves staff numbers
Southern Cross Travel Insurance is slashing its staff numbers from 90 to 45 people.

News Bites
Latest Comments
  • Harking back to the old days
    “Tactical move by CIGNA and looks like they have a lot of bench strength now in sales, underwriting and product / pricing...”
    19 hours ago by hitting rock
  • Greens want ACC extended to cover sickness
    “Never happen. The Greens are such an aspirational bunch. Must all the weed. They 'want' all sorts of unlikely things...”
    22 hours ago by All hat no cattle
  • Harking back to the old days
    “Really positive news. NZ has been blessed by many successful leaders and it is good that their skills can skill be utilised...”
    1 day ago by Francis L
  • Harking back to the old days
    “I dare say Cigna just got that extra grunt it's been looking for....”
    1 day ago by Matron
  • Greens want ACC extended to cover sickness
    “The Greens have no idea The purpose of the Woodhouse report was to remove the "at fault" component of accidents Sickness...”
    2 days ago by LNF
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News
Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com