ProtectionDec 4 2015

L&G slashes protection questions in bid to boost business

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L&G slashes protection questions in bid to boost business

From next year, distributors willing to let Legal and General tap into their client data will no longer have to ask as many questions to secure a protection policy.

Mark Holweger, managing director for partnerships at L&G, said the insurer plans to slash the number of protection policy questions it asks in bid to boost business.

He said they are looking at the questions asked and whether data could be obtained from another source, rather than expecting adviser’s clients to fill in yet more forms.

The provider is currently working with bank and building society partners, along with larger networks, on how it can take client information from their systems to feed into the data it requires to underwrite protection policies.

Mr Holweger admitted that mortgage advisers are still not talking about protection, with one in four mortgages not covered.

“The passion and drive to make it [cutting down questions] happen quickly is right at the top of our agenda. A lot of the questions we ask, the answer has been collected by the adviser already so why are we asking it again?”

He said the insurer would also streamline the amount of paperwork it sends out to advisers’ clients next year and make sure literature is specific to what has been bought.

There are also plans for L&G to advertise more about the benefits of having a protection policy.

Steve Bryan, head of intermediary at the insurer, told FTAdviser that starting up a conversation about protection is often difficult, but that advisers are doing their clients a disservice if they do not at least broach the subject.

“Advisers are missing out on extra income and consumers are risking their own income by not considering protection cover, but the industry and government need to do more to publicise the benefits of these forms of insurance.”

Peter Le Beau, head of Income Protection Taskforce, said all insurers are looking at streamlining their processes now, as they know the less hoops a client has to jump through the more likely they are to commit to a protection policy.

He said L&G were right to try and remove some of the frustration from the protection policy application process. “A lot of data is out there already; in a few years time the questions we ask and the way we ask them will be very different.”

L&G revealed their plans to FTAdviser as EY’s senior adviser for financial services Malcolm Kerr said that when one provider gains enough traction with ‘Pay as You Live’ technology to assist underwriting then others will be quick to follow.

The solution helps insurers identify risk exposures and puts pricing control in the hands of customers, who can decide how much and how well they want to drive.

Policyholders receive immediate feedback through apps, emails and portals to keep track of their premiums, with evidence already showing that seeing the close correlation leads to changes in driver behaviour.

emma.hughes@ft.com