About 69% of the respondents to a Gen Re survey want minimum standard definitions in life insurance.

The study questioned 63 Australian insurance professionals from 14 insurers.

Asked if standards should be optional, 68% think they should be mandatory.

Almost half think minimum standard definitions should be stricter than current standards.

About 21% say they should stay the same, while 15% want them less restrictive than at present.

“The comments didn’t give clear insights for the preference of being less restrictive; they just indicated that restrictions should be consistent across the board,” Gen Re Senior

Account Manager Viviane Murphy said.

Another area of overwhelming agreement (69%) is the desire for consistent terminology in the marketplace.

More respondents want definitions reviewed every three years (40%) than want them reviewed annually (31%).

About 55% think the introduction of standard definitions would improve consumer confidence in life insurance.

Some 59% do not think standard definitions would limit competition, and 42% say they would improve sales.

“The unaddressed issue is that the customer may not understand the value of trauma cover until they have a claim,” Ms Murphy said. “Marketing a need for basic levels of trauma coverage and benefit may provide a compelling choice message to consumers.”

Ms Murphy says the life insurance industry must do a better job promoting cover and its role in society.

“Products need to be more transparent and simple, supported by services that are empathetic and supportive, to address consumer and community needs in a better way.”