How underwriting leads to better experiences

Similarly, over this timeframe, the Underwriting landscape has undergone significant disruption, as insurers began to recognise the value of their underwriters engaging more with advisers - evolving from a back-office process to an integral part of business acquisition. More recently as technology has advanced, digital underwriting solutions have been introduced (underwriting rules engines) to help with 'heavy lifting' in terms of assessment volumes - allowing underwriters to demonstrate their ‘value-add’ by providing a more solutions-based approach.

Zurich Chief Underwriting Officer, Peter Tilocca says, “Underwriting is one of the key drivers of adviser advocacy. Advisers value the service proposition that underwriters can deliver to their business. This service is underpinned by strong relationships, clear communication and collaboration.”

The Zurich & OnePath Annual Underwriting Survey

Matthew Apps, National Underwriting Distribution Manager has conducted an annual Underwriting survey with over 350 advisers nationally which focuses on the overall Underwriting service proposition to get a deeper understanding of the expectations of the modern adviser – and how we are tracking against them. This annual performance survey is now in its fourth year and has been expanded across both Zurich and OnePath writers. 

Matthew says, “To truly understand the expectations of the risk adviser we mustn’t just rely on external benchmarking or analytics (or worse still make assumptions). By conducting our own regular in-house performance analysis via direct contact with our customers we can objectively measure our performance, identify pain points, review our processes, and apply remedial action as required. The Zurich and OnePath underwriting teams value the feedback directly from our partners and can incorporate that valuable feedback to deliver a service proposition that delivers high-quality outcomes.”

What were the findings?

Preferred method of engagement

Advisers still highly value face to face interaction – both with BDMs and underwriters with nearly 40% of advisers reporting that this was their preferred method of engagement. This figure is down on previous years – having come through a year where for much of the time - contact was only possible via virtual meetings (MS Teams, Zoom etc) or over the phone. 

The emerging and second most common preference was where the adviser typically adopted a hybrid or combination approach of face to face and virtual/phone contact. 

Communication 

Communication from underwriters (if of a high standard) is invaluable to advisers. 

Many respondents stated that proactively providing a clear and concise rationale behind any non-standard decision and highlighting the specific risk factors, arms the adviser with the tools to have that difficult discussion and ‘sell’ the decision to their client. This is a major pain point if not done (or not done well). 

Solutions-focused

One of the key drivers of adviser advocacy is where the underwriter applies a solutions-focussed approach to their risk assessment.  

This does not mean that the underwriter will provide unsustainable decisions – rather that they will utilise all of the resources available to them e.g. reinsurer, CMO, forensic accountant and most importantly their individual risk-profiling skills and explore all avenues available to provide the most appropriate terms – first time. The underwriter should do so using all of the decision ‘levers’ or product options available to them to mitigate any additional risk – rather than coming back with a ‘textbook’ decision that has been given little consideration. 

Ease of doing business and adding value

These two service elements go hand-in-hand. Ease of doing business is ultimately the most significant driver of adviser advocacy and by virtue of the adviser’s experience – adds value. It can be summed up as a combination of the points already covered: 

• Having ‘solutions focussed’ underwriters – providing solutions wherever possible.  
• High-quality communication from Underwriters and Case Managers. 
• Sustainable competitive decisions.
• A service model that genuinely supports collaboration. 

In Summary

Whilst the life insurance and advice landscape will continue to change and evolve with regulation, product design and innovation, the financial adviser’s need to partner with a company that delivers service excellence has not. The onus now lies with the insurer to closely monitor and be truly committed to providing a market-leading underwriting service proposition that continues to ‘make underwriting easy’ and add value throughout the entire experience.