This information is for Foresters Financial’s advisers only, and is not intended for consumers.
Introduction
When selling protection insurance, it is important to manage the risks being taken on. The three products sold by Foresters (and indeed many insurers in the UK) are life insurance, critical illness and income protection.
Who is MorganAsh?
MorganAsh is a specialist medical underwriting company which provides underwriting services for Foresters Financial. MorganAsh has provided this service since 2008. MorganAsh operates in the UK, Ireland and Germany and works for multiple insurance companies including Zurich, Vitality, Royal London and many others.
What is underwriting?
Underwriting is the process of gathering data and assessing insurance risks. The aim of underwriting is twofold:
- Not taking on consumers who actively select to take out insurance after they have identified that they have a health issue.
- To ensure that each consumer pays a fair price for their risk, depending on their health.
What is the process?
The underwriting process consists of two main parts:
- Gathering the required data; this is undertaken by a nurse within a tele-interview.
- Making the underwriting assessment decision.
Sometimes the information provided during the tele-interview is not sufficient to make a decision – and further information is required. This may be obtained in a number of ways:
- From the customer’s GP (this is called a GPR – a General Practitioner’s Report).
- From a physical assessment; typically involving blood tests.
- From a further phone call.
Pre-checks prior to submitting for underwriting
There are a few checks which advisers should make prior to sending for underwriting.
- A quick age, medical and occupation check, depending on product – different products cover different ages and conditions – please see the guidance list below. If in doubt, you can consult with an underwriter. Email PreSalesUW@morganash.com if you want to consult with an underwriter for an early indication.
- Check for tests and investigations – if the customer has any ongoing tests or investigations then it is best to wait until these are complete prior to submitting for underwriting – otherwise they are likely to be postponed while the underwriters wait for the results of tests or for investigations to be understood. Make a note and re-submit the case when the tests and investigations are complete.
Booking the tele-interview
The first stage is to book the telephone interview. Advisers can do this on the sales adviser booking application. This is a browser application which is accessed from any device with an internet connection and a browser, including a smartphone, tablet or PC/Mac. Booking is undertaken in real-time, so you must be on the internet to make a booking. More information on the booking system.
The customer will receive confirmation of the appointment by email. They can re-book their appointment via the browser application should they need to.
Please note:
- If the customer does not have an email address, then add your own email to the email field on the portal.
- Please input the postal address correctly and don’t use all capitals – the printed report and envelope will directly use the address information you input.
- Only one tele-interview is required for multiple products.
Informing the customer
When informing your customer of the interview please cover the following:
- They will need to know their weight and height, so they should check these prior to the interview.
- If they are taking any medication, they should have these to hand for the interview.
- They should allow at least half an hour – longer if they have any conditions.
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They should be honest. It is in their interest to be honest, as, if they are not, then at the time of a claim the policy may be null and void – and not pay out.
The tele-interview
All interviews are undertaken by experienced, qualified nurses. The nurses will help the customer through the process. The interview can take around 30 minutes – but does vary, depending on the number of conditions.
If the customer needs to re-book their appointment, they can do this at any time. The tele-Interview is valid for 6 months.
The tele-interview may take longer than completing an online application form, however it is designed to collect a comprehensive range of information – so that the customer can be assessed as accurately as possible.
Further evidence collection
Sometimes further medical information is required in order to understand the risks. Further medical information is obtained in addition to the tele-interview in two circumstances:
- When the information obtained in the initial tele-interview is inconclusive.
- When the financial risks are high.
The limits when the financial risks are high are dependent on the product, age and the amounts being insured. These are referred to as non-medical limits and are itemised in the tables below. It can be seen from the tables that for the majority of Foresters Financial’s’ cases, the tele-interview alone is sufficient.
Non-medical/medical limits
KEY
TI Tele-interview
NSE Nurse screen examination
MER Medical examination report, completed by a doctor
Lipids Lipid profile
FBP Full blood profile (haematological and biochemical)
HIV HIV test
COT Cotinine test
ECG Resting ECG
PSA Prostatic specific antigen
Nb Next birthday
| Age (nb) | Up to £150,000 | £150,001-£250,000 | £250,001-£500,000 | £500,001-£1,000,000 | £1,000,001-£2,000,000 | Over £2,000,000 |
|---|---|---|---|---|---|---|
| Up to 40 | TI only | TI only | TI only | TI, NSE | TI, NSE, FBP, HIV, COT | TI, NSE, FBP, HIV, COT |
| 41–50 | TI only | TI only | TI only | TI, NSE | TI, NSE, FBP, HIV, COT | TI, NSE, FBP, HIV, COT |
| 51–60 | TI only | TI only | TI only | TI, NSE, FBP, PSA, COT | TI, NSE, FBP, PSA, HIV, COT | TI, NSE, FBP, PSA, HIV, COT |
| 61–65 | TI only | TI only | TI, NSE, Lipids, COT | TI, NSE, FBP, PSA, COT | TI, MER, FBP, PSA, HIV, COT, ECG | TI, MER, FBP, PSA, HIV, COT, ECG |
| 66, | TI only | TI, NSE, Lipids, COT | TI, NSE, Lipids, COT | TI, NSE, FBP, PSA, COT | TI, MER, FBP, PSA, HIV, COT, ECG | TI, MER, FBP, PSA, HIV, COT, ECG |
| Age (nb) | Up to £100,000 | £100,001-£150,000 | £150,001-£300,000 | £300,001-£500,000 | £500,001-£1,000,000 | Over £1,000,000 |
|---|---|---|---|---|---|---|
| Up to 40 | TI only | TI only | TI only | TI, NSE | TI, NSE | TI, NSE, FBP, HIV, COT |
| 41–50 | TI only | TI only | TI only | TI, NSE | TI, NSE, Lipids, COT | TI, NSE, FBP, HIV, COT |
| 51–60 | TI only | TI only | TI only | TI, NSE, FBP, PSA, COT | TI, NSE, FBP, PSA, HIV, COT | TI, NSE, FBP, PSA, HIV, COT |
| 61–65 | TI only | TI only | TI, NSE, Lipids, COT | TI, NSE, FBP, PSA, COT | TI, MER, FBP, PSA, HIV, COT, ECG | TI, MER, FBP, PSA, HIV, COT, ECG |
| 66, | TI only | TI, NSE, Lipids, COT | TI, NSE, Lipids, COT | TI, NSE, FBP, PSA, COT | TI, MER, FBP, PSA, HIV, COT, ECG | TI, MER, FBP, PSA, HIV, COT, ECG |
| Age (nb) | Up to £10,000 | £10,001-£15,000 | £15,001-£25,000 | £25,001-£40,000 | Over £40,000 |
|---|---|---|---|---|---|
| Up to 40 | TI only | TI only | TI only | TI + NSE | TI+NSE+FBP+COT |
| 41-50 | TI only | TI only | TI only | TI + NSE | TI+NSE+FBP+COT |
| 51-60 | TI only | TI only | TI+NSE+Lipids+COT | TI+NSE+FBP+PSA+COT | TI+NSE+FBP+PSA+COT |
| 60-65 | TI only | TI+NSE+Lipids+COT | TI+NSE+Lipids+COT | TI+NSE+FBP+PSA+COT | TI+MER+FBP+PSA+HIV+COT+ECG |
| 66+ | TI only | TI+NSE+Lipids+COT | TI+NSE+Lipids+COT | TI+NSE+FBP+PSA+COT | TI+MER+FBP+PSA+HIV+COT+ECG |
What conditions are affected?
The goal is to give everyone the protection cover they need. MorganAsh goes to great lengths to ensure that there is a complete understanding of every consumer’s individual personal details. Every case is assessed by a human. There is no ‘computer says no’.
Smoker/non-smoker status
A smoker is classified as anyone who has used tobacco or nicotine-related products within the last 12 months. If an applicant is using, or has used, e-cigarettes containing nicotine within the last 12 months they will be charged smoker rates.
Life
Covers the consumer for death. Nearly everyone is suitable. Common issues are:
- Must be under 85 at the end of the term.
- If there are pending tests or investigations, we are likely to postpone until the outcomes of the tests are known.
- Has a severe recent major life-threatening condition, for example a heart attack.
Critical illness
Covers the consumer for a specific list of common conditions. Common issues are (in addition to the above, for ‘life’):
- Must be under 65 at the end of the term.
- Has a major condition, for example diabetes, heart attack, stroke or liver failure.
Critical illness cover
Critical illness pays a fixed (usually lump-sum) on the diagnosis of a serious illness listed as covered under the policy.
The illnesses covered typically includes ‘heart attack’, cancer, stroke, renal failure and major organ transplantation, plus others as listed in the Policy conditions.
Often, the cover also includes total and permanent disability (TPD) based usually on an occupation-related definition.
The rationale for personal Critical illness cover is that serious illness is life-altering as well as life-threatening, and often has a financial impact, for example inability or impaired ability to work. Benefit payments therefore mitigate financial hardship, for instance, by paying off a mortgage loan.
Critical illness cover holds more potential for anti-selection and fraud/moral hazard than life assurance:
- Since Critical illness is a ‘living benefit’ the life insured benefits directly from the claim payment.
- Some applicants may take out a Critical illness policy when they are aware of serious symptoms but before they have consulted a doctor about them.
- There may be a temptation to affect a policy with a high sum assured to take advantage of any ‘windfall’ effect.
As with other products the underwriter will need to build a picture of the applicant’s health, including:
- Current state of health
- Medical history
- Build
- Smoking status
- Family history
- Occupation
Before submitting the application, it is important to remember that if the client has already suffered from one of the insured conditions, then they are unlikely to be accepted for Critical Illness Cover but if in doubt please check with the underwriters using the pre-sale underwriting mailbox.
You can email the underwrtiers at: PreSalesUW@morganash.com
Total and permanent disability
Total and permanent disability is assessed under activities of daily living and is only available in combination with critical illness cover.
Income protection
Covers the consumer for inability to work due to health issues. Common reasons for declinatures are (in addition to the above):
- Must be under 65 at the end of the term.
- Has a major medical condition such as diabetes, stroke, heart attack or multiple sclerosis – where it will not be possible to offer income protection cover.
- Mental health and musculoskeletal issues, such as back and joints, are the main reason for income protection claims circumstances – and any recent history of these is likely to result in an exclusion.
- Occupations involving working over 50 feet, and certain occupations such as police, armed forces, labourers and some jobs in the oil and gas industry, will be declined for income protection and waiver of premium cover.
Waiver of premium
For income protection and waiver of premium cover, occupations are given a class between 1 and 4 – and charged appropriately. An administrative job would be classed as 1; however, a carpet fitter or builder working up to 50 feet would be a 4.
Waiver of premium is assessed under own-occupation definition – and is only available for class 1 to 3 occupations. However, if applied for in conjunction with income protection cover for a class 4 occupation, then waiver of premium can be offered on an ‘activities of daily living’ definition. If the applicant is a houseperson, or is not in an occupation at the time of a claim, then waiver of premium will be assessed on ‘activities of daily living’.
These examples are not exhaustive, they represent a simple high-level guide. Email PreSalesUW@morganash.com if you want to consult with an underwriter for an early indication.
Underwriting decisions explained
The options for critical illness and income protection are to accept at standard rates, apply an extra mortality/morbidity rating, apply an exclusion, postpone or decline.
- Standard rates mean the premium stays the same.
- Extra mortality or morbidity loadings are expressed as 100%, 200% – 100% means twice the premium is applied.
- Exclusions can target a particular item – for example, back issues to income protection.
- Postpones are typically due to an ongoing issue that needs to be resolved prior to a policy being put in place.
Life cover can also have a per-mille loading. Per-mille ratings are used to cover a risk that is viewed as particularly high in the early years, after diagnosis of a condition, and usually are applied for a set number of years rather than the full policy term. The rating is linked to the level of cover, and is most often used for life cover where there is a recent history of cancer (where any postponement period has passed). An example would be a £5 per-mille rating applied for the first 3 years of a plan. If the sum assured was £50,000 then the per-mille rating would be £5 for every £1,000 worth of cover, so: £5 x 50 = £250. The £250 is the annual rated amount, and the monthly extra would be £20.83 on top of the basic premium for the first 3 years.
Total and permanent disability – may have exclusions or be declined.
Note: Foresters Financial’s underwriting philosophy is that everyone who would normally receive a 50% loading is granted standard rates – this means that people with a minor health issue pay the same as those with no health issues. This is not unique, but most companies in the market do not do this – and is a great feature as more people are granted the standard premium than if they purchase on the open market.
Postponed cases
Sometimes, when there is an impending test or investigation, the underwriter will postpone the case. Typically, this is until the tests or investigations are complete – or it may be a set period of 5 months or a year. MorganAsh provides a list of cases that have come to the end of their postponement period, on a monthly basis.
Declaration of health
If a policy is being underwritten many months after the medical data was collected, the underwriter may ask for a ‘declaration of health’ – this is a short interview to check that the consumer’s health has not changed since the tele-interview was first undertaken.
Pre-sales underwriting
Sometimes, advisers will be aware that customers may have a medical condition – and it may be worth undertaking a quick check with an underwriter to understand the feasibility of receiving cover. MorganAsh has a dedicated email inbox just for this purpose, which is: PreSalesUW@morganash.com
Pre-sales underwriting should help manage expectations for advisers and customers. Our underwriters will try and reply promptly to enquiries. Please only use the above for pre-sales enquiries and continue to use Underwriters@morganash.com for any other queries. The dedicated pre-sales email is not for chasing applications or debating underwriting decisions.
Information to be provided
The mailbox is monitored by underwriters and, in order to give you an accurate and prompt reply, it helps if your teams could include some high-level information:
- Age of the customer
- Type of cover being considered.
- Approximate sum insured.
- Details of any medical conditions, with approximate dates and severity.
- More information and more details help provide the best response, but we appreciate the need to be brief at this time.
Please include your phone number, as the underwriters may want to call you to discuss the case with you.
Please note that underwriters are giving an indication of the underwriting from brief information – this is not binding and may change when they go through the full underwriting process.
How is Foresters Financial’s underwriting better than the competition?
Many companies have gone down the road of providing online automated systems. These have the benefit of a quick/instant turnround, but several significant drawbacks:
- They are quick for the healthy – but, for anyone with a medical condition, they have to obtain information from the GP – which takes weeks or months.
- The automated systems are blunt instruments and generally don’t take into account each individual’s circumstances.
- If the consumer or adviser does not fully understand the questions or answers, then the customer may not get paid out at the time of claim.
The result is that many companies reject claims due to a poor information-gathering process – and blame the adviser or consumer for not providing the information. In contrast, the Foresters/MorganAsh process addresses these shortcomings:
- The nurse tele-interview obtains far better medical information; is a significantly more positive experience and removes the ‘judgement’ of what medical information is required from the consumer and adviser.
- Each case is manually underwritten, so individual circumstances are always taken into account.
The result is that Foresters Financial pay out on 99.999% of claims – with only 1 case of critical illness being declined in the last 10 years. This is far better than every other company in the UK and gives consumers a far higher level of trust in Foresters Financial compared to other companies.
Data protection and security
All data is stored securely in accordance with GDPR. As a policy is for many years, then the data will be stored for many years – so it is available at the time of claim.
MorganAsh is audited and certified to ISO 27001. This is the industry standard for IT security. MorganAsh is also accredited with Cyber Essentials Plus – a more specific cyber security standard.
Legal notice
This information is for Foresters Financial’s advisers only. It is provided as a high-level, simple guide. Please refer to our product terms and conditions for full details.