Life offices are competing for IFAs' 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
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
NU head of eIFA development Nigel Howard says: “The basic problem is lack
of IFA confidence in using the internet.”