Think Tank: Debate reveals insurers may disincentivise non e-business
Providers may soon start disincentivising paper-based business in a bid to try to push intermediaries to conduct more business online, according to the latest COVER Think Tank.
Speaking at the roundtable debate, which questioned service standards in the protection market, Stephen Wynne-Jones, portal product manager for Assureweb, said some providers will soon step up their campaign to move away from traditional paper-based business in favour of new technology.
"We are going to see providers disincentivising the manual way of doing protection business. I know providers that are going to be doing this later in the year.
"This is really going to be a big change. Effectively, we are going to see a surge in business being done electronically," he said.
Wynne-Jones said that while he is unable to identify the insurers in question, he is aware of two providers that will be adopting this approach and added it will happen in a matter of weeks rather than months.
Once these plans have been rolled out, it is thought other providers are likely to follow, he explained.
There has been considerable focus on online business in recent years, with Friends Provident, Legal & General, Liverpool Victoria, and Scottish Provident all encouraging advisers to conduct their business electronically, by paying extra commission for business submitted online. However, it seems like providers are ready to step this up a notch.
Sue Wilkinson, head of life and health propositions at Abbey for Intermediaries, strongly denied the provider had any plans to encourage advisers to abandon paper business and said it liked to provide choice to customers.
However, Friends Provident, also involved in the Think Tank, has since refused to reveal its stance. The protection provider's marketing intelligence manager, Tony Jones, highlighted the advantages of online business but refused to be drawn on the issue.
"Online business benefits both the adviser and the insurer by providing potential cost reduction benefits to both parties. We understand that some providers may be introducing disincentives, but have no comment at this time," he said.
For the full roundtable report, click here.
