LVApr 12 2017

LV eyes innovation after robo-advice success

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LV eyes innovation after robo-advice success

LV plans more innovation as it looks to grow its business following the success of its robo-advice and automated underwriting systems.

Speaking after the release of the firm’s annual results today (12 April), which showed profits had been hit by the reduction in the industry-wide Ogden discount, managing director for protection Myles Rix told FTAdviser the firm will continue to innovate in the coming year.

“We are an organisation that prides itself on innovation and we are quick to respond to the market,” he continued. “We have been innovative with new business and you can expect those things to continue in future.”

In recent years, the insurance firm has launched an online quote and apply portal, Fastway, while in 2015 it invested in Wealth Wizards, a robo-advice system that helps savers planning for retirement.

Mr Rix said Wealth Wizards had been “transformative in terms of the costs of advice”.

“Fastway is a tool for advisers and an opportunity to lower costs and the company is looking to expand it,” he added.

But while some in the industry have expressed concerns that robo-advice could destroy jobs, Mr Rix was adamant that robo-advice would not replace advisers.

“We are now working with more IFAs than ever before in terms of where business has come from,” he added.

“Intermediaries are our principal distribution. We believe in the advice they are bringing and we will continue to support them.”

Matthew Harris, director at Edinburgh-based Harris Independent Advice, said: “We always welcome more sophisticated interactive underwriting tools [such as LV's Fastway] that we can use.

“There are several issues when applications get stuck because the questions being asked are not quite right for the situation of the client. Anything that makes online underwriting smoother I would certainly welcome.”

simon.allin@ft.com