Australia: Study shows little consumer willingness to pay for advice
Source: Asia Insurance Review | Apr 2019
A study commissioned by Zurich has revealed a significant disconnect between the cost of providing life insurance advice and the willingness of consumers to pay for that advice.
The study, findings of which are set out in a white paper entitled The Risk Advice Disconnect, showed that only 8% of those surveyed indicating they were willing to pay more than A$1,000 ($709) as an out-of-pocket fee. By contrast, 93% of advisers said they would need to charge in excess of A$1,000.
The study, conducted by Rice Warner on Zurich’s behalf, also showed that none of the consumers surveyed said they were willing to pay A$2,000 or more, the amount that almost two thirds of advisers said they would need to charge.
Almost 30% of consumers said they were not willing to pay a fee at all, a finding which illustrates the size of the challenge ahead if expert help with life insurance is to remain within reach of everyday Australians.
The research examined the attitudes of 1,000 Australian adults towards a range of issues relating to life insurance advice. A