As part of its recent roadshow for independent advisers, AMP’s Head of Underwriting, Marcello Bertasso, shared his top ten tips when choosing an underwriter, in order to optimise pre and post sale service and efficiencies.
Many of the tips relate to decisions or processes that will save time for the adviser, their client and the insurer:
Tip 1: Choose your underwriting partner wisely, ensuring ease of access to underwriters, and who are able to offer flexible solutions for advisers and clients.
Tip 2: Underwriter Philosophy- Is the underwriter’s philosophy relevant for common issues impacting clients. Is it clear and simple. For example, what is the underwriter’s approach to issues such as:
- Mental illness
- Body Mass Index levels
- Cardiovascular disease
Tip 3: ‘Connect’ with the underwriter. Does the underwriter have an open door policy? Do you have access to underwriters when you need them?
Mr Bertasso encourages advisers to tell underwriters exactly why their client needs cover to assist the underwriter gain a thorough understanding of the reason for the insurance application. In turn, Mr Bertasso says AMP underwriters are required to discuss all sub standard cases with the adviser.
Tip 4: Engage the underwriter early in the process. The earlier the underwriter becomes involved, the sooner any issues will become known and addressed. This can include a flexible pre-assessment lodgement process.
Tip 5: ‘Go electric’. Mr Bertasso emphasised that 60% of further requirements requests from underwriters relate to incorrect or incomplete paper applications. But with the availability of electronic applications and underwriting engines (in the case of AMP: Easywrite Office), all these errors can be avoided, as applications cannot be lodged until all parts have been completed.
Mr Bertasso said that 30% of all cases are now accepted immediately via AMP’s Easywrite underwriting rules engine.
Tip 6: Leave it to the experts. Does the underwriter offer specialist tele-interviewers if the adviser prefers to outsource the collecting of clients’ medical and other personal/lifestyle information.
Tip 7: Reduce Suspense Times. Mr Bertasso highlighted AMP’s TeleDr Service, which is a doctor-to-doctor telephone exchange designed to speed up the process of gathering further medical information/reports from the client’s doctor.
Mr Bertasso said the longer it takes to complete an application, the greater chance there will be of an adviser wasting their efforts, where 30% of cases do not complete if it takes 90 days or more to access all medical information and reports.
AMP … will underwrite clients from current personal statements from any insurer
Tip 8: Reduce Paperwork. AMP says it will underwrite clients from current personal statements from any insurer.
Tip 9: Underwrite Your Clients Once. Advisers should be aware of the reinsurance level capability of the underwriting company, across all insurance cover categories. At what point must the insurer refer to its reinsurance provider?
Tip 10: Does your underwriter do what they promise? What are the underwriter’s stated turnaround times, and do they meet them? What are the stated completion rates, and are they met? What proportion of cases require PMA Reports? What is the overall quality of the underwriting decisions?
AMP’s Client Connectivity roadshow also featured an excellent presentation from well-known adviser, Russell Collins. Mr Collins shared with advisers how he connects with clients at the fact find meeting, which is the key to establishing the client relationship, as well as the importance he places on preparation in securing the trust of the client. riskinfo will cover details of Mr Collins’ highly successful approach in a future report.
