Radically different approach to member underwriting unties knotty schemes

Sometimes, group life schemes can get horribly stuck.  It happens when the competitive tendering of schemes with members on very high benefits is stymied by insurers’ member underwriting requirements.

Take for example a City banking firm with 50 employees where 14 of the employees have insured benefits of just under £9m each.  Advisers may find it difficult to switch such a scheme even though the potential annual savings to their client could run into the thousands!

The sticking point comes when benefits are so high that they can exceed the maximum limits at which an insurer will accept a previous insurer’s underwriting decision.  (For example, Ellipse has a maximum transfer limit of £5 million on any one member.)   In these circumstances, the members will need to be re-underwritten. 

This leaves the adviser in a tricky situation where they can’t risk moving the scheme as there is no guarantee that all the benefits will be covered by the new insurer.  The client is effectively locked into their existing insurer and whatever premiums it sees fit to charge.

What’s the solution?

Far from being a hypothetical situation, an adviser came to us with the exact problem described above – and we had a solution!  We offered to underwrite the members BEFORE they decided whether they should stick with their current insurer or switch the scheme to Ellipse.  We set no conditions that required them to switch, even if our premiums were lower than the holding insurers, and charged no fee, so there was no reason for the client not to give it a go!

Using Ellipse’s online member underwriting, and supported by Medical Direct’s nurse-based screening service, the members were all underwritten quickly – which they needed to be to fit into the client’s review window.  

The medical screenings were undertaken at a convenient location for all the members, so some were conducted at home, others at the client’s offices.  

The client, together with their adviser, could then make an informed decision whether to stay with their existing insurer or switch the scheme to Ellipse, knowing that, either way, all the underwriting decisions had been made and there would be no uninsured liabilities.

The members, all occupying very senior positions within their company, were not inconvenienced and the client was very pleased with both the level of service provided and the end result – a substantial reduction in their premiums when they switched to Ellipse.

Our online medical underwriting can deliver an instant decision in the vast majority of cases – the actual percentage of ‘straight through’ cases is currently running at 83% – with no need to collect any additional medical evidence, so most members will just need to complete our online questionnaire to find out the terms we would offer.  If you have clients that are in a similar situation, we would be very happy to discuss opening up their options.  Give our Sales team a call on 020 3003 6262 or send an email to sales@ellipse.co.uk