Mutual insurer Royal London has introduced changes to its underwriting limits for high-net-worth clients.
The firm said the changes, available from today (8 April), focus on enhancing the underwriting journey for advisers and their clients.
They include the mutual’s Life Cover (single and joint life first), Life Cover (joint life second death) and Relevant Life Plan.
The financial evidence for Life Cover has been increased from £2m to £2.5m for personal and business clients respectively.
Meanwhile, the financial information on application for Royal London’s Life Cover (joint life second death) has increased from between £2m-£3.5m to £2m-£4m.
Royal London said it has increased its focus on the large case market since it announced the acquisition of Aegon UK’s individual protection line of business last year.
It has bolstered its specialist team dedicated to supporting advisers with high-net-worth cases, increasing the overall team by 50% and appointing Mark Preston as service delivery manager with responsibility for large cases.
Below is a breakdown on the full underwriting changes:
|
Life Cover (Single and Joint Life First Death) |
Personal |
Business |
||
| Current | New | Current | New | |
| No Automatic Evidence | <=£1,000,000 | <=£1,500,000 | <=£2,000,000 | <=£2,500,000 |
| Salary Sense Check | £1,000,001 to £2,000,000 |
£1,500,001 to £2,500,000 |
N/A | N/A |
| Financial Evidence | >£2,000,000 | >£2,500,000 | >£2,000,000 | >£2,500,000 |
| Corroborative Evidence | >£3,500,000 | >£4,000,000 | >£3,500,000 | >£4,000,000 |
|
Life Cover (Joint Life Second Death) |
||
| Current | New | |
| No Automatic Evidence | <=£2,000,000 | <=£2,000,000 |
| Financial Information on Application | £2,000,001 to £3,500,000 | £2,000,001 to £4,000,000 |
| Corroborative Evidence | >£3,500,000 | >£4,000,000 |
| Relevant Life Plan | ||
| Current | New | |
| No Automatic Evidence | <=£1,000,000 | <=£1,000,000 |
| Salary Sense Check | £1,000,001 to £3,500,000 | £1,000,001 to £4,000,000 |
| Corroborative Evidence | >£3,500,000 | >£4,000,000 |
Royal London chief underwriter Craig Paterson said: “Financial underwriting remains an important component of higher sum assured business, but the process should support the cover being applied for, not be a barrier to sale.
“The changes we’ve introduced should improve our speed to offer, conversion rates and make Royal London even easier to do business with.
“High-net worth-clients typically have sophisticated financial needs and are looking for high levels of cover, so it’s vital that our proposition meets their needs and processing their business is as efficient as possible.”
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