Peter Hamilton, Friends Provident I suspect most insurers would sign up instantly to the idea of ...
Peter Hamilton, Friends Provident
I suspect most insurers would sign up instantly to the idea of common questions, 'so long as they are our questions.' We are unlikely ever to get a 100% agreement on health questions as they reflect the underlying contract. Shorter and fewer questions do not necessarily mean better questions if they store up problems for later on.
Different companies will legitimately have different underwriting philosophies, definitions of benefits provided, product and benefit names and exclusions on a contract. All these create some variations in the information needed at application stage. However, there are benefits to advisers and insurers in finding ways to simplify the sales process and there is certainly scope for more commonality if not universality.
Simon Farrant, Towry Law Financial Services
As an IFA, we have experienced wide variations in underwriting results for the same client.
Often, the consequence of such variations is we need to revisit clients after they have had onerous terms imposed ' or even been rejected ' by our first choice of provider. It does not take an accountant to surmise that this increases our cost of sale.
By using standardised documents, we could resubmit the same details on the imposition of terms by our first choice of provider, to a second one in the same form.
While there may be operational 'wrinkles' to using this approach, it would be a quantum leap forward from where we are now.
Nicola Smith, Swiss Life
A standardised approach would require insurers to revisit systems including automatic underwriting systems, in order to fit in with the general order. This would incur time and expense that would ultimately be passed on to the end consumer.
The extent to which it would prevent non-disclosure is also debatable. Standardisation does not necessarily help people to fill in the form correctly. The more insurance products are forced down a generic route, the less competition and choice there will be for the consumer.
