Iress’s new ‘Buy Now’ option for term insurance enables advisers to easily compare a ‘buy now’ option with alternative term insurance application processes.
In other words, an adviser using Iress’s The Exchange can look at what term products are available for their client. They can then get a Buy Now quote (initially just from Cignpost Life – a digital protection specialist) and, if it’s competitive, the client can get immediate cover there and then.
The system uses technology that builds in qualifying criteria agreed between Iress and the product provider to skip the application underwriting process completely and go straight to purchase.
To use the facility, advisers must initially contact Cignpost to establish terms and conditions.
Comment: For a mortgage client who just wants to get cover quickly for their mortgage (clearly, their main focus) the option looks to be very attractive. As other providers are added (Iress says it is in advanced discussions with other term providers), so choice and competition are added, further increasing reasons to use the system.
It’s clever, simple and, above all, great for the customer.
Of course, it won’t be suitable for everyone but, where it is and where Cignpost is competitive, the option should prove attractive for users of The Exchange. It will be interesting too to see how many customers choose this option, even if a cheaper quote is (potentially) available if they choose to go through the full traditional underwriting process. Even if they do, they could decide to go this route first and then switch over to another provider later. We suspect many may not actually bother to do so.
Plus points: A buy now term insurance option that could appeal especially to healthy new mortgage customers (which most are anyway); Simple; Avoids the risks and delays conventional underwriting can mean; The client can still choose another provider if they wish – either upfront or later, after being underwritten.
Not so plus points: Cignpost will not be known (yet) too many advisers or their clients; Cignpost won’t always offer the most competitive option; Only Cignpost can be accessed initially – although other providers can be added later.
Rating (max 10): Overall: 8. Gold
Tags: Apps and technology: Iress
I Mark: No