National Friendly has simplified underwriting questions on its income protection (IP) applications.
The insurer said this could cut the time it typically takes advisers to apply by more than half, from 14 minutes to six minutes.
The move coincides with the mutual renewing its long-term relationship with Munich Re Automation Solutions, which includes a five-year contract extension to use its Allfinanz underwriting engine for income protection.
Eliminating lengthy questions
Elaborating on the changes, the insurer told Health & Protection it intended to eliminate the need for advisers to ask lengthy question sets regarding conditions that were not applicable to their client.
The aim is to replace traditionally wordy applications with headline conditions, that only require a further drill down where a positive answer is given, it said.
The insurer added that while all of the original questions remain in the background if required, rather than a potential applicant having to answer all underwriting questions before any quote will be issued there are now seven high level questions.
Off each high level question there is then a subset of detailed underwriting questions which will require answering if appropriate.
One of the high level questions will pertain to cancer, but the detailed underwriting questions are only asked if the applicant identifies that further questions are required regarding cancer.
And in the case of ‘healthy’ lives, the number of questions reduces from more than 50 to just seven.
But even if an applicant has a medical condition requiring further analysis, National Friendly noted that only those questions relating to the condition need answering, not the detailed questions for unrelated conditions.
It said this meant the underwriting is more tailored to an applicant’s specific medical circumstances.
Matt Suddards, senior specialist protection adviser at LifeSearch, said: “To sell IP, advisers have to deal with lengthy applications that can be both time-consuming and unclear. It’s one of the aspects of protection that puts off non-protection specialists from selling IP.
“Shortening and simplifying the process is better for advisers and reduces frustration for consumers.”
Allfinanz contract renewal
And National Friendly has renewed its long-term relationship with Munich Re Automation Solutions to use its Allfinanz underwriting engine for income protection.
The insurer said the Allfinanz underwriting engine has been consistently delivering a straight-through processing rates of between 65% to 70% each month giving intermediaries immediate decisions in the majority of applications.
Graham Singleton, CEO of National Friendly, (pictured) said: “Committing to a longer-term relationship with Munich Re Automation Solutions means we’ll continue to have fast efficient underwriting technology as well as the backing of one of the biggest reinsurers in the business.
“Combined with our new streamlined IP applications and backed up by a wider product offering of accident only income protection and Friendly Shield we believe we offer a very strong adviser-friendly proposition for protecting people at all levels of risk and income.”
Noel Gilmer, vice president customer success at Munich Re Automation Solutions, added: “We are delighted to build on our successful partnership with National Friendly and its continuing innovative use of the Allfinanz platform to drive improved experiences for their protection adviser community and IP customers.
“The flexibility of Allfinanz provides continual improvement, and rapid deployment of the new underwriting questions and rules.
“We look forward to building on our multi-year relationship with National Friendly.”
