Submission to ASIC consultation - 254 - digital advice
16 May 2016
IAG welcomes ASIC’s support for the development of a digital advice market in Australia. While digital advice is a growing phenomenon in the financial services industry for the provision of investment advice, currently the use of digital advice in general insurance is limited.
In the insurance industry, automated insurance advice tools without human interactions are widely used in Australia in the home and motor insurance markets in the form of sum insured calculators. These tools generate individual sum insured amounts based on a number of detailed questions. The process is a straightforward decision tree without dynamic question sets. The consumer is able to complete the transaction directly or contact the insurance company to discuss further.