Insurance Watch Managing Director Wally Ripper has hit out at the costs of direct life insurance in an article in Asset Magazine, Australian Financial Review.

“The direct route tends to be more expensive, up to double the price, because there are embedded costs such as advertising,” Ripper is quoted as saying.

The article examines the entry into an already crowded direct life insurance market of Woolworths and NRMA targeting their existing customer bases through cold calling and direct marketing. While companies such as these are intent on selling their own branded product the article contrasts this with the approach of comparison websites such as Insurance Watch.

Visitors to the Insurance Watch website can research prices, benefits and features from a range of insurers without being “hassled” by telephone salespeople doing a hard sell.

How Insurance watch works

Ripper explains “Ours is a reactive model, not one where an insurance agent gets on the phone and calls you. The customer gets on the website, gets comfortable that we know what we’re doing and collects all the necessary information they need. They can explore their options – without being hassled.”

“It’s all about empowering the consumer,” Ripper says. An added bonus is the 20 per cent discount on the first year’s premium which Insurance Watch offers to all customers.