Jaime Monaghan said that the report, which examines the conduct of 16 life insurers, has shaken consumer faith in the life insurance industry.
“The intent behind the report was good but it’s had the opposite effect [and] spooked the market a bit,” Monaghan told Good Returns. “It’s implying there’s a big problem to be solved when the results of the report show there are instances [of problems] but it’s not widespread.
“I feel like it made people nervous to buy insurance, so people are potentially not getting what they want and need.”
Trade Me’s financial results from last year showed that, while auto and house insurance arm Trade Me Insurance had revenue up by 81.3% year-on-year, revenue from its life insurance comparison site, LifeDirect, was down 14.4%.
Trade Me’s LifeDirect portal provides consumers with quotes from different life insurers and presents factors that may impact their decision when buying a policy. According to Monaghan, however, all that data may mean nothing if consumers are simply not looking to buy life insurance.
“We give people the information they need to make a decision, but I’ve got a feeling people are staying away from buying life insurance as a result of that report, which is the wrong outcome,” she told Good Returns.
Despite the revenue drop, Monaghan said that Trade Me remains committed to LifeDirect.
“Where Trade Me is at with a new chief executive coming in and potentially a new owner, we’re not doing anything radical at this stage,” she told Good Returns.
