The outsourcing specialist says few providers can process business completely electronically and applications grind to a halt when they fail a simple risk assessment. Marlborough says only 15 per cent of applications get acceptance on first-line underwriting questions.
Results from a sample of 100 cases run through Marlborough STP platform showed that 47 cases were accepted without manual intervention, 20 were accepted by an underwriter with no further information and 20 were resolved by tele-underwriting without medical evidence. Marlborough estimates that one in three cases are referred for medical evidence but only 13 per cent of the sample required GP reports.
Director Chris Ryland says: “STP systems can give a significant competitive advantage but companies are implementing it, at best, in piecemeal fashion.”