The decision to expand distribution of its direct-to-consumer life insurance product via NAB’s 760 branches was based on customer choice, according to MLC Life Insurance.
Anand Thomas, MLC Life Insurance chief customer officer of bancassurance, digital and direct, told says the company’s decision to expand the distribution of its NAB Essential Life product was about giving customers the option to decide what’s appropriate for them.
“When you look at the trends that are happening all around the world, in terms of digitising and so forth, customers are becoming comfortable operating in that channel, and their expectations of wanting things being done in a simpler way is improving,” Mr Thomas told Risk Adviser.
“Some customers might need to go to a financial planner and get more holistic protection, but some customers … just want access to the security of having life protection in a quick and easy way.
“It’s all about enabling that distribution channel to provide customers with that choice.”
As for how direct life distribution will work alongside MLC’s financial advice network, Mr Thomas said the initial decision will come from the customer.
“The banker would ask the customer whether they have a need to have life insurance,” he said.
“If the customer says yes, then we provide options to the customer ... would they like to make time to meet with a financial planner to go through a needs-based analysis and get a fully underwritten insurance product?”
Risk Adviser’s sister publication ifa reported yesterday that MLC said in a statement NAB Essential Life will be available online, over the phone and in NAB branches.
Customers will be able to purchase the cover through “an easy and speedy application process without the need to consult a financial adviser or planner”, MLC said.