Dale Woodward Underwriting Consultant

Andrew Wibberley Alea Risk

Dale Woodward, Principal Underwriting Consultant, meets Andrew Wibberley of Alea Risk, one of the industry’ s best known underwriting experts. The two experts discuss Advanced Undrwriting, their role in this important project and why it can have a positive, profound impact on the protection market.

For years, the protection insurance industry has suffered with a disconnect between quotes and underwriting. While quoting is designed to be fast and frictionless, underwriting remains complex and time consuming.

This disparity has long created challenges for advisers, their clients, and providers alike. But with the rise of new technology, such as Advanced Underwriting, the tide is turning.

The historical divide

Dale Woodward explains,“ Quoting needs to be slick and quick. It’ s the first step for advisers to present the likely costs of cover to potential customers. Over the past decade, some insurers have introduced factors like body mass index( BMI) and smoker status into the quote stage. These are universally applicable and can significantly impact premiums.”

However, bringing medical disclosures into the quote stage has proven far more complex. Each insurer has its own set of medical questions tailored to their risk models.“ Advisers are left guessing what might be asked later,” says Woodward.“ They often resort to calling providers individually to get indicative decisions, which is inefficient and inconsistent.”

Andrew Wibberley adds,“ Underwriting processes are lengthy because quotes have traditionally assumed standard rates. That’ s led to a race for competitive standard rates premiums to be displayed, but it also means insurers must fully assess all risk factors, resulting in long application journeys.”

The cost of misaligned Expectations

This disconnect creates a significant problem: misaligned expectations. Advisers and clients invest time, sometimes weeks, only to receive unexpected outcomes.“ Whether it’ s after half an hour or six weeks, receiving a rated premium instead of the quoted standard rate is frustrating,” says Wibberley.“ And the real issue is the opportunity cost. A few bad experiences can put advisers off protection altogether.”

Woodward agrees, highlighting the emotional impact:“ To every customer, it’ s personal. It’ s their health. So being shown one price and then receiving a higher one weeks later leads to a negative perception. That’ s the real problem- things being unexpected.”

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