• early half of UK protection providers do not ask clients to sign online applications before puttin...
• early half of UK protection providers do not ask clients to sign online applications before putting them on risk - despite the industry aiming to take a tougher approach to non-disclosure, writes Johanna Gornitzki.
Bright Grey, Pioneer Friendly, Royal Liver, Scottish Provident, Standard Life, Liverpool Victoria, Norwich Union and Scottish Widows require customers to verify online applications by sending completed online application forms to check and sign.
However, Friends Provident, Skandia, Scottish Equitable, AXA and Prudential do not ask their clients to do so. Legal & General did not unveil its practices.
Peter Chadborn, principal of IFA firm CBK, believes this lack of uniformity could see more claims declined due to non-disclosure.
He said: "My concern has always been that if the process is not sufficiently robust then there could be all kinds of issues should a claim be declined.
"Could the administrator processing the information from the data capture form have made an inputting error? If so, when would this mistake become identified?
"The only surefire way to identify errors would be for the life office to forward a copy of the data they have received and demand a signature to confirm accuracy."
There are currently no guidelines for business submitted online. Chadborn believes this is a major mistake, arguing the industry needs to adopt some rules.
"Without a uniform approach for submitting online business it is incredibly difficult for advisers and clients to have confidence in the process, particularly with the focus on full and accurate disclosure and declined claims," he said.
Andy Milburn, IFA market manager at Royal Liver, agreed, saying it should be "industry best practice to get the client to sign at the end of the process, not the start".
He added: "If a signature is not required at the end of the sales process then where does the risk sit? It is not with the provider or the customer but with the adviser. If clients sign the application form just before they go on risk, the risk will be back on the customer where it should be and that is why we think it's best practice."
