ASIC relaxes life insurance Internet policy
The Australian Securities and Investments Commission (ASIC) has relaxed its policy on sending life insurance applications electronically.
The Australian Securities and Investments Commission (ASIC) has relaxed its policy on sending life insurance applications electronically.
The financial services watchdog says it will allow life companies to accept partial policy applications electronically.
Applications previously had to be in the form of a single paper document, but clients will now be able to lodge compulsory personal information and specify their required level of cover via insurance agents who would email the details to the company.
Advisers can help clients to complete the electronic part of the application form using any client information already available in the life company database, transmitting the data after it is verified by the client. The adviser must also forward the paper part of the application containing declarations by the client and the client's signature.
Although the life company can start its underwriting processes immediately upon re-ceiving the electronic part of the application, it can only issue a policy after receiving both sections and verifying the consistency of the information in both documents.
ASIC says it has granted relief from the standard application form requirements for three life companies, and is willing to grant similar relief to other life companies that wish to adopt similar processes.
AUTHOR
Recommended for you
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
