CoverNet’s technology facilitates the operation of a ‘two-sided marketplace’ taking the life insurance industry beyond the notion of an ‘indicative quote’ by providing fully underwritten applications to insurers.
Life insurers then have an opportunity to propose terms in relation to every application received from financial advisers in the market.
Financial advisers are able to truly ‘test the market’ for life insurance and can be confident they have secured the best deal for their clients.
Consumers can be confident they’ve secured the insurance policy best meets their needs.
Financial advisers are currently constrained in their ability to deal with multiple insurers, because delivering applications through multiple different systems and processes is inefficient and economically impractical.
That’s where CoverNet steps in.
CoverNet enables financial advisers to fill out a single e-application for life insurance and deliver the encrypted application securely and simultaneously to multiple Australian insurers.
All life e-applications delivered by CoverNet to insurers include a full auto-underwriting assessment based on the applicant’s health and lifestyle risks. The health assessment is delivered in the form of an ‘underwriting report’ recommending loadings and/or exclusions as deemed appropriate by the platform’s underwriting rules.
Once operational, the underwriting rules used for the underwriting assessment will be backed by at least one global reinsurer.
The platform used to perform the auto-underwriting has previously been used by life insurers in Australia, NZ, Malaysia, South Africa, Singapore, Hong Kong and China.
CoverNet enables multiple life insurers to simultaneously reply to a financial adviser’s application with proposed terms. Each insurer’s proposal will describe the key features of their product, including the pricing and terms such as loadings or exclusions.
Once all proposals are received, a financial adviser can compare the terms presented by participating insurers and make an objective decision regarding which product best meets their client’s needs.
In other words, this CoverNet feature enables the financial adviser to truly ‘test the market’ for life insurance products, and then ‘select the best’.
CoverNet provides financial advisers with a standalone, reliable ‘health assessment’ (in the form of an underwriting report) that they can use to support their clients’ financial planning objectives.
The underwriting rules used for the underwriting assessment will be backed by at least one global reinsurer. \
The underwriting assessment can be used by a financial adviser to better align their client’s financial objectives with their health and lifestyle-related risks, including likely longevity. The assessment also enables an advisor to manage their client’s expectations regarding their application for a new policy.
CoverNet’s reverse auction process enables financial advisers to ‘fully test the market’ for life insurance products when advising their clients.
Financial advisers will have an audit trail that shows they have reviewed all available product options in the market, that they were able to properly compare the merits of these products and were able to select a product that best met their client’s needs.
The process ensures financial advisers always meet their best interest duty in accordance with changed Australian regulation, following the Royal Commission into Banking and Financial Services by APRA & ASIC.