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Consumers five times more likely to non-disclose with paper applications

Consumers are five times more likely to non-disclose when they apply for protection policies on paper rather than with tele-underwritten applications, according to Axa.

Axa surveyed over 9,500 applications over the past year and found 5.78 per cent of policies applied for on paper contained non-disclosure which could lead to a claim being declined, compared to 3.48 per cent for electronic applications and 1.23 per cent for tele-underwriting applications.

Axa chief underwriter Mike Taylor says the research shows tele-underwriters’ knowledge combined with Axa’s underwriting system ensures the relevant questions are asked and hugely reduces the risk of non-disclosure.

He says: “Feedback we’ve had from advisers who have used tele-underwriting shows that one of the main advantages for them is passing the risk of not capturing the right lifestyle and health data on to us as well as saving them time by not having to fill in the form themselves.We believe that tele-underwriting can increase confidence within the industry and this is reinforced by our own claims record.”

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