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Bupa encourages Government action to safeguard consumers
Friday, 1 April 2010
Bupa Australia, which operates the leading health insurance brands MBF, HBA and Mutual Community, is encouraging the government to help protect Australians by regulating retail health insurance brokers and comparison websites.
This follows a damning expose on the ABC's 7.30 Report last night, which highlighted the fact many Australians remain in the dark regarding the lack of independence of online health brokers.
Bupa's Head of Distribution Strategy, Shane Williamson, said there was a need for the government to intervene to protect people from making potentially life-changing decisions about their health without all the facts.
"Too many Australians aren't aware that most online brokers only represent a limited number of funds and products," he said.
"And unfortunately, people don't realise that some brokers, particularly those with a large online presence, make ‘recommendations' driven by the commissions they receive rather than focussing solely on suitability for the customer.
"It's essential that the government regulate this sector of the private health insurance industry, much like they have previously for operators who provide commission-based financial services advice, to ensure Australians receive fair and honest counsel," he said.
Williamson continued that any regulation should address the following key disclosure areas:
- The number of funds represented and their market prominence
- Whether every fund listed on the website is compared, as well as the number of products compared, before a recommendation is provided
- The commission the broker receives if a consumer purchases the recommended product
- The requirement to provide customers with a written reason why a certain product has been recommended, as well as the benefits it offers.
The need for regulation is further highlighted by iSelect's claim they find customers a better deal on their health insurance.
However, Williamson queried that claim given seven of the nine funds listed on their website increased their premium this year by more than the industry average.
"As a leading health insurer, we understand how difficult it can be to find the right policy to suit your personal circumstances," he said.
"Therefore, we would welcome the opportunity to engage the government and help craft regulations that would protect Australians who wish to purchase private health insurance."
* Bupa Australia operates the trusted and respected brands MBF, HBA, Mutual Community and ClearView
