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NU and L&G incentives to draw IFAs to net

Life offices are competing for IFAs&#39 online business as Norwich Union and

Legal & General offer incentives to encourage IFAs to use the internet.

IFAs must now transact all NU term insurance business online as the

company no longer offers quotes in branches or by phone.

NU is offering increased allocation rates of 0.25 per cent on bond

products when IFAs submit the business online.

It is also bolstering its extranet capabilities and says advisers can do

more business faster by using the net as they can get immediate decisions

for clients.

L&G is offering enhanced commission for web transactions to encourage

advisers to go online. IFAs who execute term insurance business over the

net get 10 per cent more commission than the standard rate.

It also plans to adopt the same approach to mortgage term insurance in the

next three months.

IFA Acorn Independent Insurance Consulting managing director Mark Piper

says: “The internet has to be the way ahead because of reduced commission

across the board. The only problem will be for IFAs not comfortable with

the technology.”

NU head of eIFA development Nigel Howard says: “The basic problem is lack

of IFA confidence in using the internet.”

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