In an effort to demystify life insurance, Zurich has turned its back on traditional thinking and by the end of the year will launch a new product designed to revolutionise the way insurance is sold.
After consultations with its intermediary clients, Zurich found dealer groups wanted a simpler way to sell insurance.
Its response was to develop Ezicover, a term life insurance product that involves an electronic application form, 10 questions and notification of acceptance within 30 minutes.
Zurich general manager of investment management and life Barry Tomkinson said with $500,000 in cover, the new product would be “terrific for the middle market”.
“Life insurance has always been done in the same way, but we looked at what the end customer and intermediaries wanted, and developed Ezicover,” he said.
“This is just the start of a process — we will also be bringing out a trauma insurance product down the track.”
Zurich issued a similar product to Western Australian-based health fund HBF in April, of which take up rates have been more than double what was estimated.
“We will now be working on electronic applications for all of our products,” Tomkinson said.
“We have a virtually paperless office, as we have been able to pick up technologies from around the world and bring them back to Australia.
“Unless you are part of the technological changes, you will be left behind, for example with digital signatures, we are getting to the point where people expect you to be able to do it.”
Tomkinson believes that in a decade’s time the entire life insurance business model will have transformed, with some players already having moved in this direction.
“One of the reasons for Australia’s insurance gap is that people find it difficult to access life insurance and find the whole process intimidating,” he said.
“A web-based model simplifies the process for both the adviser and customer.”
When it is officially launched during the third quarter of this year, the Ezicover application form will be available to advisers via a link on their dealer group’s website and also through Zurich’s Adviser Assist website.
