Genesys revolutionises risk insurance selling

Col Fullagar

Genesys Wealth Advisers is paving a new path for Australia’s risk insurance industry with a process designed to speed up and simplify the underwriting process.

Taking advantage of the strong relationship it has developed with five of its preferred insurers, the dealer group has begun using a generic personal statement to commence the underwriting process prior to a Statement of Advice (SOA) being presented to the client.

Under an agreement based on good faith, the participating insurance companies have said they would start underwriting despite not having a signed application or a premium deposit.

Genesys risk manager Col Fullagar said this would not only reduce waiting times, but would also further improve the client’s perception of the adviser’s professionalism and value.

“It starts the process two to three weeks earlier, so while the adviser is doing the SOA, the insurer has started underwriting,” he said.

“That means once the SOA is ready to be delivered, the adviser may well know the underwriting decision, enabling completion of the application after the recommendation is discussed with the client or enabling loadings and exclusions to be pre-sold.

“At the moment, the industry’s ‘will-not-complete’ rate is 20-40 per cent, but we believe by using this facility we can dramatically reduce this because there are more compelling reasons for the client to proceed.”

To ensure the process works for the participating insurers, Genesys has said it would guarantee a 90 per cent completion rate.

The new course of action also incorporates changes to the personal medical attendance report (PMAR) process, whereby the medical authority currently used will be replaced with a Letter of Direction from the client to the doctor asking them to co-operate with the insurer and to report back to the client or the adviser if there are any delays.

“Anything that can speed up the PMAR process would be good news and we are hopeful that this subtle change will put leverage where it should be — between the client and the doctor,” Fullagar said.

Asteron, Aviva, MLC, ING and CommInsure have agreed or are finalising agreements to trial the new process with Genesys over the next three months, after which time, and depending on its success, the insurance companies will be at liberty to offer the facility to other licensees.