Rip-off fears raised over giant that runs Aussie funeral industry

An academic has told the ABC that consumers may not be getting a good deal on funerals in Australia due to the dominance of Invocare in the industry.

While the name may not be familiar, a company called Invocare operates nearly 40 different brands within the billion-dollar industry, including White Lady Funerals, Guardian Funerals, Le Pine Funerals and Ann Wilson Funerals.

University of Sydney academic Sandra van der Laan told the ABC that this dominance by a single company meant a lack of competition and thus more expensive funerals. “Most of the competition that [Invocare] face is small, family-owned businesses or much smaller operations,” she said.

But Invocare doesn’t believe this is the case, telling Starts at 60 that there was more choice available to consumers than ever before, in a range of price brackets. “We are able to offer families the full choice of a funeral service – from affordable (Simplicity Funerals) to premium with White Lady Funerals and our traditionally brands in each market,” the company said in a statement.

Van der Laan also alleged that the average funeral only cost about $1,200 to stage, but was priced at about $6,000, which meant a significant profit for the funeral provider.

A recent report by FuneralPlanner, a funeral planning website that assists families with pricing and planning of funerals, provides an insight to the cost of funerals around Australia.

Read more: Hidden costs of dying exposed

While it depends on specific locations and parts of the country, Western Australia is typically the most expensive state, with the average funeral cost in Perth totalling $7,764. Not far behind was Sydney on $7,621 and Melbourne on $7,586, while averages across the rest of the country coming in at around $6,000. (Funeral Planner was launched by Invocare last year with an aim of giving families “an opportunity to find the right services and products to suit individual needs in the comfort of their own home”.)

Invocare told Starts at 60 that the company was always upfront about costs with customers. “We provide price transparency upfront so that our customers can select an option to best suit their needs,” the spokesperson said. “We recommend people consider the range of options available to ensure their family has the most appropriate service for their personal needs, taking into account their religion, ethnicity, and budget.”

Read more: Insurer to refund almost $1M to funeral cover customers

What catches many Australians out is that their funeral insurance doesn’t always cover the full cost of a funeral. According to Canstar, the financial comparison site, the average funeral costs $11,000 and $19,000 and the typical funeral insurance policy covers up to $15,000. So while some people may be paying more in premiums than they may need, others may not be covering the possible cost of their funeral despite their intention to do so.

What do you think? Do you think you’ve ever been ripped off by the funeral industry?