TAL says a new kind of client is buying direct life insurance.

These consumers want to research what products and services are available, then purchase on their own terms, the insurer says in a submission to the Parliamentary Joint Committee on Corporations and Financial Services’ life insurance inquiry.

This compares with the “traditional” direct buyer, who selects a simple product online without advice.

“In the long term, the life insurance industry must be able to provide solutions for [the] more sophisticated, mass affluent consumer, and this has been a key focus for TAL.”

The insurer says there is still a role for simple products, such as funeral insurance, in the direct distribution channel.

And it should not be assumed that selling through this channel is not in consumers’ interest. TAL says direct consumer satisfaction levels are among the highest in the life industry.

“The key focus for insurers is on ensuring customers understand the cover they have purchased and that staff remuneration aligns to this.

“Our customer feedback consistently shows us funeral insurance continues to be a highly valued product by our customers and meets a specific need in the marketplace.”