So-called simple online applications for life insurance can generate as much as 29 metres of paperwork.
Torquil Clark Life Insurance director Jason King wanted to compare the consumer experience for buying life cover and mobile phone insurance after he was offered mobile insurance at £5 a month.
He found £5 a month would buy him, a 36-year-old male non-smoker, £50,000 in cover but discovered the process of getting on risk generated 97 pages against just 12 pages for mobile cover.
King believes this is resulting in people having phone cover but no life cover.
He says: “Life insurance has never been cheaper. Prices are falling but people are not buying it as much as they should because of the process. For critical illness and income protection, the underwriting is more stringent, so even more paper is likely to be generated. We need to make the process easier. This is not good for the environment and is hopeless for the consumer.”