‘There are consumer benefits to LIF’: Marshall

In a recent LinkedIn post, Mr Marshall said there are consumer benefits to LIF, which can stem from insurers searching for new ways to attract customers thanks to their replacement business being reduced. 

Insurers will start to look at “customer loyalty and engagement programs, additional and adjunct policy holder services, efficiency, simpler products, simpler underwriting, better adviser services that maximise adviser business efficiency and tools and resources that allow an adviser to engage their client more effectively,” Mr Marshall said.

“That combination can act to reduce acquisition costs, attract more Australians to insurance advice and build adviser businesses. As such, the benefit is more competitive (cheaper) premiums.

“Take away LIF and there is no reason to do any of the above (in an express manner).”

Mr Marshall also warned that it is crucial for both insurers and advisers to stray away from the status quo.

“Overseas players will line up and bring disruptive innovation and client engagement that will capture the attention and the wallets of Australian life insurance buyers,” he said.

“Customer benefits in this industry are there for us to lead and create. They are not for us to expect to be delivered without any change to what we do now."