Legal & General has unveiled improvements to its financial underwriting process for high sum assured business and business protection.
The changes have simplified requirements and reduce the amount of information required for larger sums assured.
Legal & General said it carried out the review of its underwriting evidence requirements with the aim of making the process quicker and more efficient, ultimately making it easier for companies to be underwritten.
Key changes include:
Life Cover:
- Increase in the sum assured at which a full financial questionnaire is required from £1.5million to £2.5million
- Additional details such as copies of company accounts are no longer required until the sum assured is in excess of £3.5million
Critical Illness Cover:
- Increase the sum assured at which a full financial questionnaire is required from £800k to £1million
- Additional details such as company accounts are required from £2million
Research published by Legal & General & Unbiased.co.uk found there to be a Business Protection Gap of nearly £1.35 trillion in the UK. The shortfall was calculated by looking at the assets, shares and profits of businesses alongside the views of business owners.
The research also revealed that there has been a significant increase in the number of limited companies and partnerships without cover. The number of limited companies had increased by 100,000 from 2008, now reaching1.3 million in the UK.
Legal & General said it hoped simplification of the underwriting process will help make getting cover easier and go some way to close this gap.
Russ Whitworth, claims and underwriting director at Legal & General said:
"We have made these changes with the convenience of our customers and their advisers in mind. The improvements to our financial evidence limits will reduce the amount of detailed information needed, reduce the need for additional information for many applications and make it easier for our customers to be underwritten.
"Although applications for large sums assured will require some financial information we have tried to ensure this is not too onerous a process and doesn't lead to unnecessary delays."
