ProtectionSep 19 2014

Protection comparison software to tackle difficulties

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The adoption of quote comparison software UnderwriteMe by four insurers this week has been hailed by the firm’s chief executive as a huge step forward for financial advisers that may have spurned the protection market due to difficulties with the buying process.

The technology has been taken on by Exeter Family Friendly, Scottish Provident, Scottish Friendly and SunLife, while a further undisclosed three firms are set to go live in the next quarter as part of a phased introduction.

It will enable the insurers to simplify the protection sales process by providing estimated price comparisons, fully underwritten prices and benefits available at the point of sale, according to Martin Werth, UnderwriteMe’s chief executive.

He told FTAdviser that up until this point the buying process had been holding back the industry.

“Advisers using insurers advertised prices may not be getting the best deal for their clients, so anyone worth their salt will have to ring around the market getting quotes, which means consequently many advisers don’t sell protection because it’s such a time consuming process.

“To do their job properly there has to be a ring round, information disclosure, long applications, which makes factoring commission on sales uncertain - the opportunity cost is just too high - so more information up front and greater certainty will mean more advisers can sell protection.”

Mr Werth said the first round of insurers to sign up this week is “a good first step towards gaining critical mass”, but there is still a lot more to be done.

He admitted that change is a difficult and slow process in this industry, and the bigger the insurer the more resistant there often is to adopting new technologies.

But he said the software has moved on rapidly and end users are now demanding the simplicity it offers.

Emma Thomson, life office relationship director at LifeSearch, said the takeup by insurers was great news for intermediaries.

She said: “Both insurers will freely admit their previous application journeys were a little clunky, but now more customers will get covered faster, and intermediaries will have a far simpler way of processing the applications.

“Early feedback from both firms already indicate their clients are being underwritten more efficiently. It’s a very positive start to UnderwriteMe’s launch into our market, and this is just the beginning of some great things to come.”