Although many processes will become automated and direct to consumer products and services will inevitably grow, most commentators believe that the common industry refrain that life insurance is sold and not bought is still valid.
Indeed, it seems that even the millennial generation, who grew up in an electronics-filled world, would prefer simple face-to-face communications and are more likely to listen to their friends than rely on marketing or PR material, according to a definition provided by WhatIs.com.
Face-to-face advice will inevitably need to be supplemented with more tech-based solutions going forward.
SimplyBiz Group, a provider of outsourced regulatory and business support services to IFAs, seems to have taken heed of this and is busy focusing on developing digital tools that complement the role of today’s adviser, not replace them.
The Group recently announced the launch of ‘NextGen’, a new web-based solution that allows advisers to provide clients with topical information and interactive tools, including the ability to undertake preliminary fact-finding and risk profiling, compare policies, generate quotations and conduct transactions online.
Comparison services
The customer experience of underwriting doesn’t always fit with FCA requirements in that providers are under obligation to meet with the terms set out initially. In reality, the price quoted at outset can change considerably following the underwriting process.
To address this, the industry has seen the ongoing development of a small number of comparison services – such as Direct Life, iPipeline’s XRAE and UnderwriteMe – which can provide real-time, buy now prices.
At the time of writing seven providers have signed up to iPipeline’s underwriting decision tool XRAE, which captures health and lifestyle information and produces indicative ratings for both life assurance and critical illness. It provides a single, comparative view of results from multiple providers.
Paul Yates, product strategy director at iPipeline, comments: “XRAE is used in 30 per cent of all our applications. We find advisers are using it more for their older, wealthier clients with higher sums assured, or where they might have indicated some pre-existing health issues – including BMI.
"Mortgage advisers are also using it more often as part of the ongoing effort to simplify the mortgage process. Recent customers who are using XRAE via the SolutionBuilder integration include Cover and Legal; Life’s Great; Personal Touch Financial Services; The Right Mortgage and Protection Network; Sesame; St. James’s Place; and ST&R.”
UnderwriteMe, a system that unifies application and underwriting process across multiple insurers, continues to develop and attract additional insurers, as well as intermediary users such as protection specialist LifeSearch, plus recently added firms such as Assured Futures, Tuto and Future Proof.
Phil Jeynes, head of sales and marketing at UnderwriteMe, said: “We have seven providers committed to the comparison service. We are actively engaging with all the major insurers and expect to announce some more partnerships very soon.
