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Loaded Protection Premiums via Networks? What's your thoughts?

Journalist:

ended 29. April 2025

With the upcoming Protection Review, some networks are essentially ‘forcing’ their advisors to sell loaded premiums on protection unbeknown to the customer. On top of this the insurers themselves offer multiple offerings via different channels and comparison sites which could cause confusion and mistrust.

  • Is it time to have a level field so consumers know what they are getting?
  • Should loaded premiums be disclosed to the consumer?
  • Are there circumstances where loaded premiums work for the consumer?
  • Have you had a customer opt for a cheaper sub-standard policy with the same insurer?
  • Has protection become too complex in the attempt to innovate?

What are your thoughts?

 

1 responses from the Newspage community

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Kundan Bhaduri
Entrepreneur, Investor and Landlord at The Kushman Group
The practice of networks pushing loaded protection premiums without consumer knowledge represents one of the financial industry's most troubling transparency issues. It's like going to a restaurant where the menu doesn't list prices, and the waiter secretly adds a 20% "plate-warming fee" to your bill. Insurance should be straightforward: customers pay premiums for specific coverage. However, the industry has created a labyrinth of identical products with different price tags depending on where you shop. While disclosure requirements exist in theory, the practical implementation often falls short. Networks justify loaded premiums by claiming they fund advice services, but shouldn't consumers decide if they want to pay that premium? Loaded premiums are the industry's worst-kept secret, a financial magic trick leaving consumers with lighter wallets and heavier questions about what exactly they're paying for.