Product Research

  • focuses on the main product features
  • has One Overall Product Research score which is complemented by one Quote for each company in a Comparison
  • research is conducted by and approved by our AFS Licensee LifeRisk Partners Pty Ltd.

FEATURES RESEARCH

Each of the Product Features and Trauma events covered in our research includes a description of the research methodology, an analysis of the key components organised so that you can easily compare features across companies.

Each feature covered by the research has a score. Scores are out of 10 and Product and Overall Product scores are out of 100.

SCORING METHODOLOGY

The underlying philosophy used to develop the relative Feature Scoring methodology is based on the relative generosity of a feature's terms and conditions. That is,

  • terms and conditions that are relatively more likely to pay a benefit when compared to terms and conditions provided by other companies receive a higher score;
  • features that are largely the same, receive the same score; and
  • features which are less likely to pay a benefit receive a lower score.

Where relative generosity isn't appropriate, relative ease of access to use a feature and/or the range events that trigger the features availability for use – e.g. Future Insurability, was used. We also take into the amount of benefits where they differ.

BRINGING FEATURES SCORES TOGETHER TO FORM PRODUCT SCORES

Where possible, the default relative weights are based on an independent measure such as the average cost, frequency of the underlying disease or accident in the population.

Examples include:

  • Waiver of Premium where the average cost can be determined by premiums with and without the Waiver of Premium option and averaging the cost across companies. The average cost can vary by age, sex, smoker status and stepped and level premiums.
  • Trauma event weights which are determined by the number of cases during a period or incidence rates of each event where it is available.

In general, we restrict the information we use to determine the default weights to between ages 20 to 60 next birthday so that we encompass the ages where people have life insurance.

There are situations where the weights cannot be determined in the way described above, for example for the Income Protection components:

  • Total and Partial Disablement,
  • Pre-disability income, and
  • Offsets

In these cases, we have taken the view that the weights should be based on the main payment trigger definitions (Total and Partial Disablement) with some weight given to the amount of payment modifiers (pre-disability income and offsets).

BRINGING PRODUCT SCORES TOGETHER TO FORM OVERALL INSURANCE PORTFOLIO SCORES

With our Premium Comparison methodology we don't provide estimates of premiums for each type of cover included in a comparison. To develop an overall Insurance Portfolio score we developed estimates of the average cost for each type of cover taking into account sum insured, age, sex, smoking status, occupation, and premium type.

The estimates of the cost of cover are combined with the product scores to calculate a default Overall Product Research score for each company included in the comparison quote.

USERS CAN ADJUST PRODUCT AND OVERALL PRODUCT RESEARCH WEIGHTS

LifeRisk Online is not in a position to know your client or provide advice that takes into account your client's specific needs. In fact, LifeRisk Online is licensed to provide general life risk insurance product advice to wholesale clients and cannot provide advice tailored to meet your client's needs. That is your role as an Adviser authorised to provide personal life risk insurance product advice.

To support your role as an Adviser we provide you with the ability to customise the research by altering the weights that are used to make up the Product and Overall Product Research scores. You can increase OR reduce the importance (i.e. weight) of a particular feature score or product to reflect its importance to your client.

These Adviser set feature weights are then used to calculate the customised product scores. Note: When you enter a weight the other scores are rebalanced so that total of the weights always add to 100%.

Similarly you will be able to adjust the weight of Product Scores so that the Overall Product Research score can reflect your client's needs. The other weights are rebalanced so that the total weights as to 100%.

The Adviser report will include the default weights and scores and the Adviser set weights. You will also be asked to record your reasons for altering weights so that you can use this information later e.g. when preparing a Statement of Advice.

PRODUCT RESEARCH

You can review the research which is available under Product Research -> Feature Analysis and Scores in the Menu.

In Product Research we also provide you with the ability to build reports comparing the PDS Extracts of product features and Trauma Event definitions.

Based on recent Adviser feedback we are also building functionality to allow you to build reports comparing products so that 2 or 3 products can be compared feature by feature. We think that this approach will assist Advisers to provide replacement advice.

WANT TO FIND OUT MORE ABOUT THE PRODUCT RESEARCH OR LIFERISK ONLINE?

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