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Tele-underwriting dramatically red-uces the chance of non-disclosure, according to Axa.

After analysing data from more than 9500 protection product applications, the provider found non- disclosure occurred in only 1.23 per cent of those that were comp-leted through tele-underwriting applications.

This was in comparison with 3.48 per cent of electronic applications and 5.78 per cent of paper applications rejected.

According to Axa the findings demonstrate the clear advantage of non-paper based applications.

The protection provider said electronic underwriting was more effective than paper applications as questions could be automatically generated to get a more detailed medical history.

Tele-underwriting could take this one step further as trained tele-underwriters could get specific details of medical conditions, further reducing the risk of non-disclosure.

Mike Taylor, chief underwriter for Axa, said: "What this research shows us is that tele-underwriters' knowledge combined with our expert underwriting system allows the relevant questions to be asked and hugely reduces the risk of non-disclosure.

"All these cases of non-disclosure were found at underwriting stage, so we were able to correct the poor applications and underwrite accordingly to make sure the consumer was properly covered."

Mr Taylor said the insurer had also received feedback from advisers who said tele-underwriting was an advantage as to them as it saved time and also passed on the risk of not capturing the right lifestyle and health data.

He said: "Tele-underwriting also reduces the need for additional evidence because the tele-underwriters collect in-depth medical information from the consumer, enabling 75 per cent of policies to be issued within five days.

"We believe tele-underwriting can increase confidence within the industry, and this is reinforced by our own claims record, with no major benefits declined on tele-underwritten cover."