Updated March 11, 2019 02:07:25 Australian life insurance firms are facing a tough sell, with the new generation of companies coming in from the other side of the world, with a number of them already selling insurance to their international clients.
Key points:The rise of life insurers comes with a lot of pressure on the companies to be efficient, writes Simon FraserKey pointsLife insurance companies are now offering insurance to Australian residents as well as their overseas clients, and there is a risk they may not survive in the global marketplaceA number of companies are already offering insurance products to Australians but this is only a small part of the marketThere are concerns about the viability of some life insurance products, such as life insurance policies, and the growing number of customers wanting to buy themIn a study released by the Australian Bureau of Statistics (ABS) in March, researchers found that about 20 per cent of Australians were looking to buy life insurance from the life insurance industry.
The survey, commissioned by Life Insurance Australia, also found that around half of Australians wanted to buy insurance from a company that had no Australian customers.
The findings highlight the importance of life and death insurance, and whether or not Australian life insurers are capable of surviving in the world’s changing insurance landscape.
There are three main ways that life insurance businesses can compete with their overseas competitors, according to the researchers.
They are:The first is by offering insurance at an attractive priceThe second is by taking advantage of their own customers’ preferencesThe third is by providing insurance at a price that is reasonable and competitive to their overseas competitorThe researchers say the third approach is more attractive because it has a greater degree of customer choice and better customer support.
While the number of life insurer policies sold in Australia has increased in recent years, this trend does not necessarily translate into higher levels of customer demand.
Life insurers are not only able to sell policies in Australia, but they also can offer them to customers in the United States, China, South Korea, Japan and elsewhere.
While this may be the case in some countries, it is not the case everywhere, said Professor Richard West, a professor of insurance at the University of New South Wales.
“In some countries the market is much smaller than in others.
In the US for example, for life insurers, there is not a large market and a lot more of them are selling policies overseas.
In South Korea there are about 500 insurance companies but the market size is relatively small and not very big.”
If you look at insurance policies sold from overseas it is very competitive.
“The key to success, he said, was to provide policies at an affordable price.”
The major concern with life insurance is that the premiums that insurers charge are not comparable to those that they charge in other industries.
For example, in the insurance sector, the average premium is around $100 a month.
“In some cases, insurers will offer a lower premium than their foreign counterparts, but this could not always be determined.
For example, if a policy is priced at $100 for two people and $130 for two other people, but the average premiums in Australia are $150 a month, it would be difficult to determine whether the Australian company would be offering a lower or higher premium, Professor West said.
The second approach is by selling insurance at reasonable prices, and by offering policies that are suitable for their own countries.”
For example the Australian Life Insurance Association has a policy which covers the costs of the first two years of a life, so if a person has been in Australia for a while, the life premium is a lot lower than what they might be paying elsewhere in the country,” he said.”
So, if they have a family and live with their parents, the premiums are not as high, but if the family goes to a different country and has their own needs and their own life, then they might pay a lot less than in Australia.
“As life insurance has become a more popular product, there has been a rise in the number and cost of policies available to Australian consumers.
This is likely to continue in the future, with more life insurers coming into the market and the amount of policy coverage available to the Australian population.
There is also a concern that there may not be enough life insurance providers to meet demand, with some companies taking a more aggressive approach to securing their product.
This could include offering policies to more Australians, or even providing life insurance in return for a percentage of the company’s business.”
Life insurance is a highly fragmented industry, and not all companies are able to deliver the level of service that they should be able to,” said Professor West.”
With a fragmented market, there are many opportunities for life insurance to fail.
The only way for life and property insurance to succeed is to have a very large and diversified product that has the customer base and is in a position to take on new and growing markets.
“Professor West said life insurers should be aware of