The race by life insurance companies to upgrade their technology operations is picking up, with ING, Allianz and GIO announcing plans to make online application processes part of their offering.
Others, in addition to upgrading these offerings, have also announced plans to change their underwriting processes to make it easier and simpler for consumers to get cover.
The next to move is expected to be Tower Australia, which already has its Accelerate offering in the market. Accelerate has been on offer for a number of years and combines straight through processing with tele-underwriting.
The company is believed to be preparing a significant upgrade under the name of Accelerated Protection Platform.
The push by life insurance companies to adopt more technology and faster cover is the result of the industry's recognition that not only do consumers want faster decisions, but it can also mean big cost benefits in time for advisers as well as cost savings for consumers.
The development of these processes has also meant a change in attitude for many companies with respect to medical tests. Fewer are being requested under the new systems, with a greater reliance put on personal statements.
The other big change to occur in the life insurance sector in recent years has been through television advertising offering often relatively small amounts of cover over the phone.
In 2007, Allianz announced plans to offer up to $1.25 million of life insurance online over the phone in 12 minutes.
There are now at least three companies advertising over-the-phone protection, while other companies are advertising life insurance cover for those with more complex needs.
Fido, the consumer advice service run by ASIC, cautions people who are sold insurance over the telephone.
The corporate regulator notes that although it may be a convenient way to access insurance, people need to be mindful that all information is disclosed and transparent.
Nevertheless, online and over-the-phone insurance make it easier for many people to access insurance.
The industry is keen to close the underinsurance gap and while telling people they need protection through the Investment and Financial Services Association's LifeWise campaign, another way to make it easier for individuals and families to get cover is through technology and ease of acccess.
