In the wake of the recent floods you’d think insurers would have become more unpopular than Michael Clarke.
Yet reading the feedback across online news services, the public’s opinion on insurers was less vitriolic than you’d expect; an online piece by Sunrise host, ‘Kochie’ suggesting insurers were ripping off flood victims was met with a surprisingly negative response.
Many media financial gurus have attempted to be everyone’s friend at every opportunity, suggesting people shop around and find the cheapest deal – usually over the internet.
This is great in theory, but there are some real problems with treating the purchase of insurance the same way you’d order a DVD or download a song.
The ACCC has shown kickbacks flow from the insurers to online insurance supermarkets and for this reason you’re not seeing every available policy.
So that shopping around often leads the consumer to a site with limited policy options – it’s really an illusion of choice.
After the purchase there’s a feeling of having taken control, when in reality it can lead to a false sense of security, everything is done with a click and often not given our full attention – trusting that we’ve covered ourselves.
If a claim ever has to be made – having travelled the online route – there’s no one there to take on the insurer for the client.
An independent agent or broker can be useful when purchasing insurance, but their biggest value is usually at claim time – it’s important a client gets paid because their reputation hinges on it.
It may be based on relationships the agent or broker has within the insurer, or simply fighting for a positive outcome on behalf of the client.
A considered approach to purchasing insurance is important; it exists to protect your biggest asset and your livelihood.
Peter Mancell is a director of Mancell Financial Group and FYG Planners AFSL 224543. This information is general in nature and readers should seek professional advice specific to their circumstances. If you’d like help with your financial future, we might be Australia’s best financial planner. We think we’re Tasmania’s best financial adviser and
