AIA has decided not to agree to use a universal proposal form promoted by the Life Brokers Association.
The association has tried for years to convince product suppliers to use a standard application form. It argues this would reduce the amount of documentation brokers must carry and the time spent on administrative matters.
The concept has been accepted by some insurers, including Fidelity Life, Tower Health and Life, Royal & SunAlliance, Lumley Life, Club Life and Equitable.
However, AIA has said it won’t support the idea. AIA backs the concept in principal, but currently a universal form does not fit in with its requirements, AIA national sales manager Bernard McCrea says.
"Our long term interests lie in developing our electronic applications, to speed up processing times" and move the industry away from relying on paper based applications, McCrea says.
LBA president Dave Craven says AIA’s stance is hard to understand given other insurers have accepted the form.
However, the association is still attempting to pressure AIA over the issue and has called on brokers to express their views to the insurer.
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