New e-commerce system criticised

Scottish Equitable Protect's recently launched e-commerce system has come under attack by advisers, writes Johanna Gornitzki.

The initiative, which offers intermediaries end-to-end processing, was unveiled in an attempt to make it easier for advisers to write more protection business. It provides advisers with a number of options including the ability to save incomplete applications and recall them up to 30 days later.

Advisers can also submit multi-benefit applications, including income protection, as well as save illustrations to their own computer or email them to clients.

However, advisers suggest it fails to deliver a true web-based option. Kevin Carr, senior technical adviser at LifeSearch, believes the project is redundant as intermediaries using Scottish Equitable's e-commerce system still have to do parts of their business on paper. "Immediate cover is one of the key reasons for submitting business online. However, Scottish Equitable's system will not cover clients until they have signed and returned the form," he said.

Responding to this, Lesley McPherson, spokesperson at Scottish Equitable, admitted that the provider does not offer signature- free business.

"Advisers have to print out the application forms and get their clients to sign them. However, according to research we have carried out, this is what the market is after," said McPherson.

To encourage advisers to opt for the online route, the provider is offering enhanced commission rates for those who submit their cases via the e-commerce system.

Scottish Equitable Protect aims to have 25% of its total business conducted via e-commerce by early 2005. It hopes this figure will rise to 40% by the end of next year.

However, the provider will not turn its back against the traditional way of doing business. "We have no plans to abandon paper-based business. We recognise that there are still many clients and IFAs who prefer to do business this way," McPherson added.