Financial planner uptake of online apps plateaus, survey reports
Adviser usage of electronic applications (eApps) for life insurance is light and has plateaued, according to a survey commissioned by Zurich.
Around one third of advisers are submitting only a small proportion (less than 10 per cent) of their applications online, according to the survey, conducted by Beaton Research and Consulting on behalf of Zurich's life and investment's business in Australia.
Zurich and Tower Australia both offer online insurance applications, and experienced a surge in popularity in the first few months on the market.
However, the recent survey results found that about one in five advisers made only light to moderate use of eApps for life insurance, in this case lodging between 11 to 50 per cent of client applications online.
On the high usage end, four in ten advisers said they submit 90 per cent of their applications online. So, usage is concentrated at both ends of the spectrum.
Zurich general manager sales and marketing, retail risk, Philip Kewin said the findings reflect preferences driven by adviser demographics, rather than a lack of awareness about the merits of online applications.
Use of eApps differed by geographic location. Advisers from South Australia and the Northern Territory were the heaviest users, and Victorian and Tasmanian advisers were the lightest.
While Kewin said the efficiency savings that come from using eApplications are fairly well documented, he conceded that "some advisers still have a preference for traditional pen and paper, and are unlikely to change their approach".
The survey's findings support the view that insurers must still accommodate a wide range of adviser operating models.
It's not just insurance companies that have entered eApps market for advisers. Software vendor Omnium also launched an iPhone and iPad application (app) last year, which both present quotes on premiums from 12 insurers.
Omnium's app is now nearing the 1000-users mark, according to national sales manager, Trishanth Chandrahasan, who insists that interest in the technology is not levelling out.
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