Royal London and London & Country Mortgages have launched a life insurance sales tool called Streamline Mortgage Protection to “revolutionise” the protection market.
The service uses algorithms to speed up the underwriting journey and make it easier for customers to buy protection as part of the mortgage sale.
Royal London has made an underwriting scoring engine using predictive analytic techniques.
Data collected for the mortgage fact find is used by the scoring engine to make an instant decision on life cover eligibility as part of the mortgage advice conversation.
The application process has three medical and three lifestyle underwriting questions, compared to more than 30 for a traditional life insurance application.
No medical tests or additional medical evidence is needed and all customers receive an online, immediate decision.
Royal London believes more than 80 per cent of applications will succeed under the new system.
Royal London group head of protection strategy Debbie Kennedy says: “We believe this development will be pivotal to overcoming one of the biggest barriers to selling protection alongside a mortgage – the time taken to complete a protection application on top of a mortgage application.”
L&C head of protection Lucy Brown says: “We are delighted to work with Royal London in piloting what we think will be the first steps in revolutionising the protection market.
“Providing customers with a quick and seamless process, coupled with certainty of pricing and cover, can only help meet customer expectation and heighten their engagement.”