Universal Proposal Forms? Poll

Our latest poll stems from key issues discussed at the recent AIA Australia Round Table in relation to the myriad of red tape, roadblocks and inefficiencies preventing advisers and advice practices from growing more efficient and profitable businesses.

The Round Table panel considered a number of issues which can only be addressed by way of legislative change, such as removal of the Safe Harbour steps and simplifying compliance requirements.

Some of the ‘fixes’ not dependent on changing legislation, however, relate to better industry collaboration and better use of technology.

One example of where greater collaboration and better use of technology can make a significant efficiency gain rests in the prospect of advisers having the ability to submit a single life insurance proposal form to multiple insurers.

Such a system already exists in the United Kingdom, courtesy of the UnderwriteMe insurance platform. In Australia, however, it is understood that the nature and complexity of life insurance products – especially income protection insurance – makes the same outcome more challenging.

Another potential reason why a universal life insurance proposal form has yet to eventuate in Australia relates to some insurers’ reluctance to concede any competitive advantages they may have in the underwriting of certain occupational categories or other elements of their underwriting processes.

While protecting competitive advantage is understandable, is it possible that a much more streamlined and universal life insurance application and underwriting process would lead to productivity gains across the board – more new business being written – to the extent that a rising tide would lift all boats?

The concept of a universal life insurance proposal form is simple, yet its achievement is problematic – or at least has been until now. But is it time for the sector to come together to find a way to make this happen?

Tell us what you think and we’ll report back next week…