2016 has seen Insure Me Now take out the Canstar award for the third year in a row. It’s no great surprise given it boasts some of the most competitive pricing in Australia and an impressive list of product features including an effortless online application process, no hidden pre-exiting condition exclusions and life insurance that doesn’t expire – as long as you pay your premiums you keep it for life. To find out more about their continued success, we spoke with Nicola Carr, General Manager of Insure Me Now.
Q: ‘Digital disruption’ is a real buzz phrase at the moment. Has digital disruption affected the life insurance buying process?
Absolutely. There’s certainly a lot more insurance information and products available online these days so consumers can do far more themselves from their laptop, desktop or smartphone. Like many areas, however, it can be quite confusing to determine what is quality information. Fortunately with independent groups like Canstar rating the ever-growing list of products and providers, I think this really helps consumers make informed decisions in an otherwise very cluttered market.
Q: Determining what life insurance they actually need can be confusing for consumers. What’s the best way to go about this?
Life Insurance calculators are a great tool, as they can help you quickly calculate how much cover you need. Of course this can vary according to your personal circumstances. But as a general rule you should take into account your current and future debt including things like home loans, business loans and credit cards. After all, the main motivation for life insurance is for your family to be able to clear your debts in the event of your death. Another consideration is to be able to provide an income stream for your family in the future. Again, this will vary on your own situation. Things such as the number of children you have, their ages and your household expenses are all important things to consider.
Q: None of us have a crystal ball. But what changes would you predict across the life insurance industry over the next decade?
In many ways the future is likely to be shaped by the recent past. There have been a lot of changes in the life insurance advice space over the last two years. Upfront commissions have reduced for advisers and the ongoing commissions they earn are soon to be capped. This is a lot less motivating for risk advisers who’ve been used to churning and swapping clients every few years to gain their upfront commissions. This, in combination with quite a bit of bad publicity for advisers in general, has seen the direct life insurance sector – including businesses like Insurance Me Now – gaining a lot of traction. I can only see this trend continuing. Over the next decade we will almost certainly see even more growth in the number of people buying their life insurance online.