View more on these topics

Online key to reducing rejected critical claims

Online underwriting is the key to reducing the number of critical-illness cover claims rejected for non-disclosure, accor-ding to Direct Life & Pensions.

The Financial Ombudsman Service’s recently said that in many cases of non-disclosure on application forms for protection products, it was found that clients had disclosed information to their advisers but the information was inaccurately recorded.

DLP, which launched its Intelligent Protection system through LifeQuote in January, says online tools must be adop-ted if the industry is to make any headway towards reducing cases of non-disclosure and improving transparency, ultimately reducing the likelihood of advisers being blamed by their clients for the blame being passed on to the adviser.

Dr Marius Barnard, the pioneering South African heart surgeon who helped develop critical cover backs DLP’s online system. He says: “Advisers have a duty to do everything possible to make sure that non-disclosure is minimised and claims are paid, if they fail to do so, they deserve to be sued.”

“Intelligent Protection makes sure all protection needs are correctly identified and prioritised, leading to the correct advice been given, with the risk of non-disclosure being removed. This means patients and advisers’ clients will get benefits when they need it most.”

DLP sales and marketing director Richard Verdin says: “The introduction of online submission and underwriting tools has solved a number of issues and introduced a number of efficiencies for insurers but recent reports suggest they do little to affect non-disclosure rates.

“The industry has to face up to the fact that re-engineering the whole advice and application processes will be essential if we are to maintain the confidence of advisers to advise on and customers to buy protection products.”

Recommended

Private sector must be central to running of personal accounts scheme

Norwich Union head of pension strategy Graham Vidler says private enterprise should be central to running any form of national pensions savings scheme.Vidler says: “The move towards personal accounts is a positive step. Norwich Union will work with the Government to ensure that the right balance is struck between value for money for the tax […]

Property price rises forecast to beat inflation

Building society bosses are predicting house price growth will continue to outstrip inflation, confounding forecasts from economists. A BSA survey reveals that the majority of society chief executives believe house price rises will run at 4-5 per cent this year. This is in marked contrast to price predictions published by the BSA in January, which […]

Class seminars from Canada Life

Canada Life is running a series of group insurance seminars between June 6 and July 6 2006 covering its internet-based e-business portal CLASS. Advisers can learn about its absence management and employee assistance programmes.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment