- Agree (78%)
- Disagree (18%)
- Not sure (4%)
A solid majority of advisers supports the proposition that it’s time to implement a universal life insurance application form that can be processed by all insurers.
As we go to press, this is the view of 78% of those voting in our latest poll. Interestingly, however, just under one in five (18%) disagree with this proposition. We wonder why! Perhaps some votes may have been contributed by industry stakeholders other than advisers…?
…as is often the case, the devil can be in the detail
On the surface, the concept of a single life insurance application form which can be submitted to any retail insurer makes so much sense, but as is often the case, the devil can be in the detail. As we noted last week, the concept of a universal life insurance proposal form is simple, yet its achievement is problematic, especially given the commercial challenge for individual insurers associated with potentially giving up a competitive advantage across some occupational segments of the market.
This conversation is an extension of the recent AIA Australia Round Table, where the panellists spent some of the time comparing notes on what’s within the control of the industry itself when it comes to eliminating or at least reducing the red tape, road blocks and inefficiencies that advisers must deal with every day (see: AIA Australia Round Table – Advice at the Crossroads Part 2).
With advancements in technology, including the enhanced back-end flexibility that can be delivered through utilising new AI capability, surely it’s not technology that’s holding back a universal life insurance application form.
Whatever your thoughts, we’re keen for you to share them as our poll remains open for another week…
They all ask the same questions and this would make it easier to get pre assessments done from a number of Insurers
Any step to level the playing field between these rorting companies the better. More transparency required, way overdue. I lost all respect for most of these corporate creatures by witnessing the yearly onslaught of unjustified extortionate premium increases for long term loyal clients. Add this to the fact most first year premiums to new clients are heavily discounted and respect drops to zero.
Dear RiskInfo, Thank you for the memories. They are all flooding back
About 15 or so years ago Sue Laing and John Butterworth of Life Risk Research proposed a universal E app application. They consulted all the life offices and assembled all the pet questions and put them into a universal E app.The whole concept was that a client could complete one application and there could be forwarded to as many life offices as recommended by the adviser. Sounds good!
Then came the implementation. Suddenly all those insurers who given some support and perhaps even some financial support for development costs, got cold feet. You see the claims people were working away against the proposition. Anyone he's been in this industry long enough and talks to underwriters knows that that frequently the claims people will ask an underwriter how did you make the decision to provide this claimant with cover on the terms that were acceptable to the client.
You see claims people have an inherent dislike to pay claims, despite what they may tell you.Don't believe me, have a look at the evidence provided by a TAL underwriter to the Hayne Royal commission. It will curdle your blood
The E app proposal died a slow and painful death. Individual insurers who had suffered individual claims about certain types of illnesses insisted that their pet questions be put into the E app.
If fell flat on its face.
As it will this time, unless that toothless tiger CALI decides that it might be a good idea. Good luck
Comments are closed.