The most trustworthy sources for insurance advice
A popular topic of discussion lately has been ASIC’s submission into a recent insurance inquiry, indicating that people should be wary of advice providers who are a part of a vertically integrated chain of service. Over the years, ASIC has brought this topic up over and over, warning people of the bias advice that they may be receiving.
Vertical integration in this instance refers to a bank that has a financial service to offer, which is supplied by an external entity as a part of the entire service. Your bank may offer an insurance advice service with a special deal on insurance through an external insurance company if you go through them. This may seem like a great idea because a deal is a deal and all of your financial business will be moving through the one bank. But how do you know for sure that this deal is as good as it sounds? After all, you don’t have much to compare and you are dealing with a bank which has a lot to gain from your participation. Even if your advisor isn’t one who is driven by those sales bonuses that lead to bias advice, they may still be receiving pressure from higher management to achieve a certain level of sales for that particular insurance or other services on offer. Don’t get me wrong, the deal could be a pretty good one and ideal for your situation but at the same time, it is always good to have the options available for inquiry and unbiased representation.
The best places to get this kind of unbiased advice are horizontally integrated financial institutions that will have a higher number of suppliers to choose from or through an entirely separate financial advisor who does not have a strong partnership with one particular insurance provider. Make the most of these options to find the most appropriate insurance for you at the most suitable price.
Growth focus can offer you unbiased insurance advice if this is a topic that concerns you. Feel free to book a consultation and we will sit down with you and talk you through your options. Do not get caught in the trap of the big banks.