The life and protection industry could save £37m annually by taking steps to earlier identify clients that are considered non-standard risk, says portal provider Exweb .
The key is to introduce efficiencies by, for example, ending the commong practice of entering multiple applications in order to find solutions matching client needs, it says.
The portal is attempting to address the issue and costs by launching a new service called Special Risks Centre, which will help IFAs identify special risk cases and offer to find best rates through a specialist underwriting process.
Exweb quotes reasearch from the ABI and providers showing out of 414,000 non-standard applications made in 2001, some 45% were defered, declined or did not proceed.
”Assuming the cost to the provider of underwriting a non-standard risk case, including medical evidence fees, administration and ancillary costs is £200, this represents a cost ot theindustry of £37m a year.” Exweb says.
”By reducing the level of multiple applications per individual case, the new service is expected to remove millions of pounds from the cost of processing non-standard business.”IFAonline
Putting the tech into protection
Square Mile’s series of informal interviews
Fallout from Haywood suspension
Launching later in 2019
£80bn funds under calculation