Industry
Prudential has launched a tele-underwriting service in a bid to try to make its return to the guaranteed critical illness (CI) market more attractive to intermediaries. The service, which was rolled-out at the end of March, will give advisers the option to let Prudential undertake the underwriting process over the phone.
Commenting on the launch, Paul Cowman, head of protection at Prudential, said: "We wanted to increase the number of ways in which intermediaries could deal with us. Time is a precious commodity for advisers who need slick and swift administrative processes with few complications. As we roll-out tele-underwriting and refine the service, the design of the new features will help remove barriers for them when writing basic protection business."
The move follows Prudential's decision to re-enter the guaranteed CI market in the middle of March, after it received a lukewarm welcome by IFAs following its decision to pull out of the sector in April 2003.
Back then, intermediaries were furious with Prudential's decision to not only pull the plug on new business, but also refuse to accept pipeline applications.
However, Peter Chadborn, financial adviser at Chadborn Baker & Kearle, said the launch of the tele-underwriting service could see Prudential win intermediaries over. "Prudential needs to offer something different if they want intermediaries to start using them again. There are still only a handful of providers offering tele-underwriting, so on that basis, Prudential have the edge," he said.
Prudential has announced that the entire tele-underwriting process will take around 20 minutes. As well as asking general questions concerning weight, height and smoking habits, the underwriter will also ask questions on occupation, physical activity, medical history and family history.
