Direct Insurer

Consumer generally have bad experiences after purchasing life insurance directly from life insurance. The majority of the purchase is done via online. Instead of turning to advice on insurance after a bad experience with direct insurance, most people end up thinking that it is not worth having life insurance because they have had a bitter experience.

Consumer are not comfortable about how direct insurance is sold at all because it is not underwritten at the time of sale. As a result - most people think they're covered when they might not be and because direct insurance companies do not ask about previous illnesses until claim time, clients find out that they are not covered when it is too late.

It is necessity to raise consumer awareness about the importance of getting life insurance through life insurance agents - but it is difficult for the agent - to match the direct insurance advertising campaigns.

Direct Life Insurers - are getting big coverage in morning television or evening television. There's a fair bit of money that goes into those and as an industry we can't match that. Life insurance companies with tied agency are struggling at the moment and that matching the direct insurance spending in advertising would force companies to increase premiums.

That would drive consumers even further away from advised insurance.

The life insurers that uses agent - need to find other ways to tell people they need proper advice. But is it working? No, people are still buying direct insurance in droves despite getting burnt when submitting claim.