Survey shows best method

Non-disclosure least prevalent in tele-interviewing

High levels of non-disclosure from adviser-interviewed insurance applications have been picked up by tele-interviewer MorganAsh's annual survey. The survey was compiled by asking for doctor reports and/or tele-interviewing across a range of adviser-interviewed policies.

Non-disclosure was found in 70% of cases originally submitted through the traditional adviser process, across a sample of 1,226 cases. A quarter were found to have material non-disclosure, which MorganAsh defined as "whether or not the information that had not been disclosed on the application would have led to a change in the underwriting terms". The range of total non-disclosure found in cases ranged, across nine companies, from 52% to 82%, and the range of material non-disclosure was 10.5% to 42%.

By product, the mean average total non-disclosure for life and critical illness was 67%, while the mean for income protection was much higher at 78% with material non-disclosure on the former being 18% and the latter 34%.

The distribution channel appeared to make little difference, whether bancassurer or IFA, while paper-based applications had the same non-disclosure rates as electronic submissions.

Material non-disclosure for tele-interviewing was found to be 4.3%.

Andrew Gething, managing director of MorganAsh, said: "If you look at the report, with the material non-disclosure going down to such a low percentage, tele-interviewing provides an answer to the non-disclosure problem."