Revolutionising Financial Underwriting

Author:

Helen Croft  Helen Croft,  Underwriting and Claims Strategy Manager

Monday 14 May 2018


Revolutionising financial underwriting

Your clients see you as the go-to expert when they need financial support. We want to help you continue to be that reliable pair of hands which is why AIG Life is continuously streamlining processes and making improvements to help you get your clients the protection they need easily.

Fast-track financial underwriting

Traditionally, financial underwriting is seen as a barrier to sales of high-net-worth or complex financial cases. Commonly requiring detailed, and in some cases, sensitive information to be acquired via paper forms needing wet signatures, it’s seen as an onerous necessity that can delay applications and could even hinder your relationship with your clients. Over the last 10 years we have seen huge advancements in underwriting automation for medical conditions, so it’s time this approach was applied to making financial underwriting easier too.

Clients needing less than £1,250,000 of life cover and £650,000 of critical illness insurance will not have to answer any financial questions at all. Those needing between £1,250,000 and £3,000,000 of life cover or £650,000 and £1,500,000 of CIC will now be eligible for our new fast track financial underwriting process. These new rules ask a streamlined question set - as few as just one question in some cases - to allow more applications to get financial acceptance immediately through our expert online underwriting system.

We believe that you should have full control over your client’s application journey, so we have decided to bring financial underwriting into the 21st century and have completely scrapped routine paper financial questionnaires.

 


 

What does this mean in practice?

A 40-year-old who currently earns £100,000 is looking for £2,500,000 of personal life cover.

They will no longer be required to fully disclose all personal financial information and will now only be required to provide details of their income to get immediate acceptance.

No paper, no signatures, no delays for financial underwriting.

 


 

We won’t routinely need financial evidence until the sum assured is over £3,500,000 of life or £1,500,000 of critical illness insurance (and even then we still won’t ask for a paper financial questionnaire), meaning most applications can be accepted based on the information provided by you and your client.

 

Relevant Life Business Protection

Employee benefits have an important role to play within a business. A strong benefits package is an integral reason for companies to attract the best talent and to make sure they stay. Our Relevant Life Insurance is a straightforward, cost effective, alternative way for employers to provide tax efficient death-in-service benefits for their employees outside of a registered group life scheme.

To make our Relevant Life product even more competitive, we have increased the amount of cover for employees aged under 30. For employees aged from 17-29, they could now receive up to 35 x their income. We assess “income” to include salary, bonus, dividends, and any taxable benefit in kind.

The full cover available is as follows:

Age
Cover (income multiples)
17-29 35x (up from 30x)
30-39 30x
40-49 25x
50-59 20x
60-71 15x

AIG Life is committed to being easy to do business with. We will continue to innovate in all areas of our business to make sure our processes are as streamlined and customer-centric as possible. So your clients continue to see you as the reliable expert they need.