Progress from Royal Liver has hit out at the Association of British Insurers’ guidance for online and telephone protection business, particularly for not addressing the issue of wet signatures.
The guidance, published on Tuesday, urges insurers to send the completed application form to the client to check but it does not mention wet signatures.
Progress IFA market manager Andy Milburn says: “There is nothing about the client signing to say that the answers are correct or incorrect at this point.
“Sadly we knew this would happen. How is this going to help us reduce the issue of non-disclosure in the industry? This is almost more important than any review of Total Permanent Disability yet it has been ignored again.”
The guidance says insurers should have scripts for tele-underwriting and put processes in place to make sure tele-interviewers stick to the script.
But Milburn claims these controls should be expertise based rather than process based as they would potentially restrict experienced underwriters.
He says: “An inexperienced call centre team member or inexperienced underwriter would need to stay on script but an experienced underwriter may be right to go off script as they would know to probe some answers to more depth.”