Legal & General has launched an interactive underwriting tool which has fewer questions for those aged under 36 and is tailored towards specific disclosures.
The service is an addition to L&G’s existing online protection system and is designed to improve speed and responsiveness at the point of sale.
Russ Whitworth, director of claims and underwriting development at L&G, says the main differentiator between the system and other firms' online underwriting tools is clients under the age of 36 only have to answer questions which are appropriate to their age when applying for life cover.
Over time he hopes the system will become “even smarter” by tailoring questions towards gender and other age groups.
The tool is designed for advisers who speak to clients face-to-face or over the phone while they fill in the form – data capture people would continue to use the standard application.
Whitworth says another advantage of the system is it tailors questions to specific disclosures, so someone who does skydiving will be asked specific questions about that activity, rather than generic questions about hazardous activities.
In addition, clients do not need to be specific about their job title but can choose a category such as ‘office-type environment for 75% of the day’, which helps to avoid situations where people give different labels to the same role.
The tool was launched on 10 September and since then L&G has received over 5,000 interactive applications and 8,000 standard applications.
While it does not have targets for the amount of advisers who opt for the interactive method, Whitworth estimates 25-30% of the market speak directly to clients while filling in an application.
He states: “By shortening the underwriting journey, interactive underwriting enables IFAs to make their clients aware of the status of their application as it is processed – saving time for both IFAs and their clients.”
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Emily Perryman on 020 7968 4554 or email [email protected].IFAonline
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