Non-disclosure ‘more common in paper applications’

The tendency not to disclose information about one’s medical history and lifestyle is more common among those filling out paper insurance applications than those who submit them over the phone or computer, according to AXA.

With paper applications, non-disclosure accounts for 5.78 per cent being declined, whereas non-disclosure only affects 3.4 per cent of electronic applications and 1.23 per cent of phone applications, the insurer found.

In electronic applications, non-disclosure is less common because certain answers prompt more questions.

Mike Taylor, Chief Underwriter for AXA, said: “What this research shows us is that tele-underwriters’ knowledge combined with our expert underwriting system allows the relevant questions to be asked and hugely reduces the risk of non-disclosure.

“All these cases of non-disclosure were found at underwriting stage, so we were able to correct the applications and underwrite accordingly to make sure the consumer was properly covered.”

Meanwhile, a recent AXA survey found that employees use approximately five and a half days per year sending text messages.

Tags: insurance applications, non-disclosure, underwriting stage, lifestyle, electronic applications, Insurance, paper