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ABI considers amazon-style website for protection

The Association of British Insurers is considering developing a non-advised Amazon-style protection website which would show consumers the types of products bought by other similar customers.

Assistant director of health and protection Nick Kirwan said it was looking at ways it could develop a protection website for consumers.

The ABI has met with the Money Advice Service to discuss if the ABI could link with it to provide protection information to the public but Kirwan admits there are limitations with the MAS system as it stops short of giving advice.

He says: “We might be able to use industry data and not give a recommendation but say to people ’other people like you bought this’. We would not be saying what is right or wrong. I am wondering what people think about that kind of Amazon-style proposition, because that is where our debate is going.”

London&Country sales director Michael Aldridge says: “The principle is a sound one and seems to work for Amazon. I do not think you can ever replace full advice but this is a good example of getting in touch with the modern consumer.”

But Roxburgh Financial Management financial sales manager Garry Webb says: “The issue I have with consumer websites that are based on similar scenarios is it is not technically giving advice but in a way it is. It is saying ’that person took this plan out and you should do the same’. I do not see any way around the full advice process.”

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. Are you all completely Bonkers!! So how does this work then?

    Messages like this popping up to incentivise prospective buyers?

    ‘ the last 18 stone bloke suffering from class 2 diabetes and high blood pressure bought this insurance from AVIVA’ ….
    Bet it doesn’t say…. But was declined 4 weeks later – Everyone is Crazy

  2. Honestly.. havent they got something better to do…. Its only one step away from the well worn scenario we have all heard “well there a bloke in the pub who’s life insurance is only £5 per month, why are you quoting £30 per month”

  3. I guess this has its place for the “standard” person – provided it comes with all the necessary health warnings… compare the short list or compare the not quite whole of market… so good for finding a premium… but as Peter has said, ignorance of underwriting issues is likely to lead to more problems… and of course the Trust work might take up some time… I assume it will also come with a few gismos to help calculate levels of cover, affordability… of course the UK is littered with clients banging down the doors for more life assurance. Though I do get the feeling that it will end up being rather like the bloke that buys a bike online and has to take it to the local shop to get it assembled properly so that he or his child don’t break their necks.

  4. I cannot quite work out why the representative body of insurance providers is going into distribution? Shouldn’t it be their members that do that? It would be like the CII/PFS, IFP or AIFA setting up a discount investment website. Confused

  5. Perhaps the ABI should create a website that ranks/rates ‘advised’ firms and helps channel clients to receive the best advice for the lowest price. We all know there is no such thing as non-advice when you start adding in scenario’s, suggestions, etc. I see this as a big negative for advised firms.

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