Advertising insurance: time to get serious

No more eggs please

By Julie May
Mon 04 Aug 2008

Australia's underinsurance problem was raised at AFA's National Forum late last week, with calls for insurers to think before they advertise.

The means by which insurance is advertised in Australia is a major problem and one the whole industry must address.

That was the message from Australian Financial Risk Management director and chief executive Phil Young, who presented at the Association of Financial Advisers (AFA) National Forum in Sydney late last week.

"If insurance companies in Australia had a good image, there wouldn't be the underinsurance problem there is today," Young said.

"I'm not pointing the bones at anybody, but I want to get insurance companies away from promoting themselves through eggs, through sprouts, through the use of comedians and by spending lots of money on sporting events."

The Investment and Financial Services Association needs to develop a major marketing campaign about the real benefits of insurance and the insurance companies would do best to follow suit, Young said.

"I want insurance companies to tell the stories about the thousands of people that are affected by tragedy each year in Australia and how insurance helps provide the funding mechanism so that they, or their surviving family members, can get on with their lives.

"Maybe then the attitudes of people in Australia, when it comes to insurance, would change...more people might want to come and talk to us...and hear about the solutions we can recommend."

Young received AFA's Adviser of the Year award last year and was one of five key-note speakers at this year's event.

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