Ellipse has automated its rate-review process for its group life policies covering up to 500 members, and group critical illness policies with up to 300 members.
The new process allows advisers to upload scheme information to the digital group risk insurer’s online systems and obtain the rates that will apply once their clients’ current two-year rate guarantees end.
Rate-review quotations are produced within minutes, and are available weeks ahead of the date their terms come into force.
John Ritchie, chief executive of Ellipse, views the new service as part of the company’s commitment to treat customers fairly.
He said “It is hardly fair to inform clients of their revised terms either just before or – even worse – some time after their current terms expire.
“Even so, this is what happens across much of the group risk market, even though letting clients know new terms in advance of their taking effect is actually one of the FCA’s requirements.
“Clients and their advisers may want to review their cover and the base point, as a review is knowing the cost if cover continues with their existing insurer on the current policy structure.
“We are confident that the terms we offer will be competitive, so we’re not afraid to let our policyholders know what their renewal terms will be well before they take effect.”
Ellipse recently launched a charity initiative called, ‘You quote, we donate’, in which the company pledges to donate £1 to one of three charities for each quotation advisers obtain from its online service.
Advisers will be able to select which of the three should receive the donation immediately after completing each online quote.
The firm, which first started trading in 2009, is the trading style of the UK branch of ERGO Lebensversicherung AG, part of the Munich Re Group. It trades separately from Munich Re’s UK reinsurance businesses.
Adviser’s view
Daren O’Brien, director at London-based Aurora Financial Solutions, said of Ellipse’s new rate review system: “It gives the client a better picture in the short term rather than waiting for an annual review.
“The new system is better for clients because it is more specific and allows them to receive their quote almost instantly.”
