Insurers sign-up to GPS
Eleven of Australia’s major insurance providers have now signed-up to use the Generic Personal Statement (GPS), a new document developed by the financial planning industry for risk advisers that standardises the way client information is submitted to insurers.
According to the founders of the initiative, risk consultant Sue Laing and Genesys risk adviser Col Fullagar, of the large insurers only AMP has yet to confirm its acceptance of the form.
The GPS replaces all the health, occupation and activities questions that are normally included in an insurer’s application form, and was created to streamline the underwriting process by ensuring clients are only required to complete one personal information form when applying for cover.
According to Fullagar, the feedback from risk advisers has been overwhelmingly positive, but its ultimate success will depend on industry take-up — by both risk advisers and insurers.
“I think most insurers are giving it a six-month trial, so advisers need to use it or lose it,” Fullagar said.
He added that Genesys intends to conduct a survey among its own risk advisers to gauge their views on use of the GPS.
Fullagar said: “We are also saying it is a way of changing the advice process, because the GPS can be used in the fact-find stage — it means you can conduct your field underwriting up-front, which results in a more professional service to your client.”
According to Fullagar, risk software provider Plantech is currently looking at how to integrate the form into its applications.
The form can be downloaded off the web at www.thegps.com.au. Since its launch online in October 2005, over 3,000 advisers have visited the site.
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