by Tony Vidler
Convenience in insurance can come at a steep cost: When does your client want to have the drama with their insurance company? At underwriting time, or at claim time?
This is a confusing facet of the life & personal risk insurance business; this perception that some companies are easier to do business with than others due to the apparent lack of barriers in underwriting processes….and while that is true to a degree, it is not always as simple as it seems. Many advisers and brokers make the same mistake as many consumers in this respect, and both do so for the same reason: they have not had to go through the claims process.
To be sure, different insurers have different retention levels, make some different morbidity and mortality assumptions occasionally, and they definitely target different parts of the consumer-market with their pricing and underwriting terms. These factors undoubtedly make a difference to the underwriting process for any personal risk proposals.