Protection intermediaries have warned underwriting processes are 'worse' than motor or home insurance applications and welcomed new technology; a new survey from UnderwriteMe has revealed.
The poll of 2,000 protection intermediaries including Lifesearch, London & Country, Plan Money and Highclere Financial Services, said advisers were spending "significant time" trying to obtain more accurate premiums for their clients.
Just under two-thirds (60%) of advisers warned such application processes were worse than motor or home insurance applications.
Advisers stated one in five applications do not proceed, costing both advisers and insurers.
For over two-thirds (68%) of customers, advisers contact more than one insurer for indicative prices before making an application, while 13% make multiple applications, typically to between 2 and 3 insurers.
Less than 47% of their applications are accepted at point of sale with no change in price or terms, and where terms change almost half (46%) of advisers contact other insurers, respondents estimated.
Advisers were then asked how they would rate new technology, which UnderwriteMe are launching early next year. Such technology would provide a single process to compare underwritten terms while providing more accurate information at quote stage.
The majority of advisers (70%) positvely rated such technology. Over a third (36%) described this approach as "game changing"; while 34% said it would be "significant." Just 6% of advisers said the service would be of no interest.
When asked if customers would prefer this method of buying protection, compared to the current process, 78% of adviser responses said the new method will be "significantly better."
When asked if the new process would help an adviser's compliance responsibilities 84% of adviser responses agreed.
Martin Werth, chief executive at UnderwriteMe said: "We provide advisers with a fast and consistent way to compare underwritten prices and benefit features for their customers. They can make an informed recommendation knowing the real cost and benefit features of different insurer offerings, as well as the speed of the checkout process. We are confident this is just what the industry needs to help grow the market.
"We have received very strong support from adviser firms and we are currently in detailed implementation discussions with insurer partners on how they can best deploy the new technology we have built. We expect to launch the technology early next year."
Peter Chadborn, director and adviser at Plan Money added: "Underwriting uncertainties have always been a fundamental part of the process for protection advice. The full degree of work cannot be quantified until the very end of the process, which is both costly and undesirable for client and adviser."
