The standardisation of application forms could have some positive benefits. Familiarity would aid co...
The standardisation of application forms could have some positive benefits. Familiarity would aid completion, speed up the process and probably improve the quality of the information provided, which could reduce non-disclosure.
Standardisation of terminology could also help to clarify questions, however, complete standardisation of application forms might be inappropriate for the following reasons.
First, the application form reflects the policy terms. A common form could restrict product innovation, as the products would need to remain fairly similar.
Second, different insurers have different underwriting philosophies. One insurer may ask fewer questions on the application form, but have low underwriting limits, needing GP reports (GPRs) to be sought. Another may underwrite solely on the information provided on the application form avoiding the need to obtain a GPR and reducing the overall underwriting processing time. Other insurers may simply choose to conduct thorough underwriting at the claims stage.
Finally, seeking standardisation may simply result in a more comprehensive application, as the form would need to address the needs of every insurer.
