Jennifer Gilchrist, senior product development manager at Royal London, says that as well as addressing the time constraints many mortgage advisers are under, the product could also help to grow the protection market.
“Some clients and advisers are put off looking at protection as the application process can be so lengthy. With this, they receive a quotation automatically, which may encourage more people to take out cover,” Ms Gilchrist says .
Although it is currently only available through London & Country, Royal London is looking to roll the product out to more advisers in 2018. In addition, it is also developing a streamlined application process for critical illness insurance, which is expected to launch in the first few months of 2018.
No surprises
Slicker underwriting processes are also helping to create a smoother protection sale. As an example, UnderwriteMe enables advisers to complete one application form, which is then provided to all of the insurers on its platform.
Any medical issues can be addressed at this point so that clients receive a fully underwritten, and accurate, premium at outset. Mr Aldridge says this is a positive step forward. “Clients hate it when they end up with a premium that is totally different to what they started with, even though they might have been perfectly happy paying it if it was offered at the beginning,” he explains.
But whether it’s a lack of trust caused by increases in the cost of cover during the application process, or the fact that the underwriting is too drawn out and tedious, overcoming these issues is a must for the protection industry. By designing simpler underwriting processes, supported by data and analytics, insurers can help advisers recommend the protection their clients need.
BIG NUMBERS
7.1%
Growth in sales of term life insurance in 2016 (Term & Health Watch 2017, Swiss Re)
36,814
Number of life insurance claims paid in 2016 (Association of British Insurers)
£75,061
Average amount paid out on a life policy in 2016 (Association of British Insurers)
£50.98
Average cost of £100,000 of life insurance, according to public perceptions (SunLife)
£10.31
Actual average cost of £100,000 of life insurance (SunLife)
