The growth in sales of income protection products will cause the life insurance industry some headaches unless they manage claims better, Asteron EM National Sales Mark Vilo says.
“The challenge for the industry will be to manage income protection portfolios profitably,” he told insuranceNEWS.com.au. “Obviously there will be an increase of claims in the future.”
Mr Vilo says income protection sales increased as advisers switched from investment products to life insurance.
“Advisers have faced challenging times and they have been looking for ways of creating more income, and that has been from insurance.”
Mr Vilo says he has also seen a lot of younger advisers joining the industry deciding to sell life insurance instead of advising on investments.
“These young advisers have looked at the life insurance industry and seen it can make a good living for them,” he said. “The whole dyna
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