The Finance & Technology Research Centre (F&TRC) has completed an analysis of the three main contenders ushering in a new era of protection underwriting.
The industry technical research organisation noted that the process for online submission of new protection business has remained virtually unchanged over the last decade and is cumbersome, inefficient and far from user friendly.
It added that a number of new services are emerging which aim to make it easier for advisers to write protection business more efficiently in a compliant manner.
F&TRC's document ‘Delivering a better Protection sales experience to the distribution community' examined Quote+, UnderwriteMe and XRAE.
In each case the assessment was also based on the system's current development plans as well as what was presently available for assessment.
Commenting on the report, Peter Chadborn, founder and principal of IFAs Plan Money, said: "'The current process for getting quotes has passed its sell by date because in an increasing number of cases the initial quotes are not the terms our clients get at the end of the application process.
"The more accurate the premium can be at outset the greater likelihood of the business getting on and staying on risk, and with Underwrite Me we can see real price comparisons and buy at the point of sale without any further underwriting.'
The Analysis:
Quote +
Positives included quote accuracy where there was a good chance of being accepted at standard rates, being rated or declined in a matter of seconds. Quote+ provides Insurers' indicative initial underwriting stance by taking into account the most common ratings to deliver an expected result.
Quote+ is able to help Advisers manage customer expectations at outset more easily than the current approach by providing an indication of whether a case will be accepted at standard rates, rated or declined.
By being able to outsource the collection of medical information, application data input and case tracking, Advisers' do not have to understand multiple Provider application processes, or tracking delivery mechanisms reducing training requirements and costs for Adviser businesses.
UnderwriteMe
UnderwriteMe links to Provider's underwriting engines and can generate "buy now" prices without manual underwriting. It covers a claimed 500 plus conditions.
If there are significant levels of disclosure/substantial sums assured the system may not be able to offer a "buy it now" price but will instead indicate the likely rating and detail the evidence that is required (e.g. GPR).
The system helps the Adviser manage customer expectations in respect of the actual required next steps and potential ratings.
The system offers a single process for applying for Protection contracts which will reduce Adviser firms training needs and costs.
UnderwriteMe said the system will engage with Providers underwriting engines which means no re-keying is necessary into the Provider's extranet. This reduces the likelihood of inadvertent errors occurring and ensures all information is shared with Insurers.
The generic version is available free for all Advisers.
XRAE
By producing indicative ratings it removes the need to approach all the Insurers in the market to understand the potential ratings and evidence required for certain cases helping guide more accurate provider selection and manage customer expectations.
XRAE provides an indication of whether a case will be accepted at standard rates, rated or declined and the evidence requirements necessary to get a case on risk.
The adviser can connect to Provider's underwriters via secure email providing access to underwriting criteria and information which may not available on XRAE. This information can then be linked to the client case.
The service will initially be free to Advisers.
