Time for an entirely new way to manage health declarations?

The Nordic Accident & Health insurance market

If the customer should decide to a health declaration can be done very quickly and it should be easy to answer the questions. In addition, the insurers want the answers to be correct and relevant so that they can make decisions about what risks the customer wants to have and at what price. The broker wants this to be done quickly and simply so that he or she, as early as during the meeting with the customer, knows whether the customer is accepted. Then the broker can as early as the first meeting investigate the conditions for increased cover.

But it doesn’t always look like this! Yet! Today of course the process is based on statistic paper forms with more or less relevant questions. The alternative is an interactive internet site where the customer has the attendant questions which need to be answered for the company to assess the risk. The time to perform a complete health declaration reduces from days and weeks to minutes since on the internet site it is only the relevant questions which need to be answered. Does this sound interesting? If you want to know more about how Itelio can streamline the risk assessment process? Contact Oscar Lindvall.

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Cost saving and increased possibilities for increased revenues

The cost of manual management is between SEK 500 and SEK 900 per application, slightly depending on the scope of the questions. The proportion of customers who do not meet the necessary criteria is on average 25-30 per cent but can go up to 50 per cent. With an interactive internet site the cost is a fraction of the costs. The broker and the customer receive clear information if the application is accepted or if supplements are required and how the process in this case looks.

Approx. 40 per cent of all applications have a ”clean” health declaration. It is not just the costs that decrease for those with ”clean health”. It also creates opportunities to sell more services/products. With approved health there is also a “risk sum” that the insurer is prepared to take. A skilled advisor or broker can identify new options for strengthening personal risk protection. Loan protection can be a great addition some families. Another is to offer premium exemption for savings. A few weeks ago Marginalen Bank offered premium exemption for savings to its customers. It is a product that increases the profitability not just within the insurance company, but also provides opportunities for ensuring that customers remain customers for longer. It provided increased incomes from the fund company. Last but not least – it strengthens the relationships and creates a more satisfied customer.

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