Cavendish Online has launched a white label service aimed at providing intermediaries with a “straightforward” life insurance and protection solution for execution-only and advised business.
The online discount life insurance and protection broker claims its service can generate additional income to intermediaries’ core business with very little effort required for set-up or ongoing running of the service.
Partner businesses do not need to be FCA registered as firms can be registered as a Cavendish Online Introducer Appointed Representative (IAR).
The customer can compare life insurance online with critical illness and income protection products available via the advised service. Firms can choose to take the execution only online service on its own or offer the advised service as well.
Companies currently using Cavendish Online’s white label solution for execution only and advised sales include Proactive Medical and Life and Money Shop Direct. The Julian Harris network and Molyneux Associates with their direct ‘Cover My Family’ proposition’ are currently using the online execution only service. There are several other introducers and networks currently in development.
Customers with pre-existing medical conditions, such as a heart condition or diabetes, will soon benefit from the new UnderwriteMe system which enables customers to answer some additional medical questions and receive a fully underwritten, guaranteed quote. The system is due to be launched by Cavendish Online around the end of April.
Should the customer not complete the online purchase of a policy they will receive an email confirming the results of their comparison plus a further follow up email. If the customer does not respond, firms can elect for Cavendish Online’s adviser team to call the customer to try to generate the sale.
Cavendish Online remains fully responsible for all regulatory processes and compliance and once a purchase has been started, takes care of administration and set up of policies including dealing with the customer, GPs and insurers.
The partner business has their own real-time MI dashboard which they can access 24/7 to see information such as visitor and quote numbers, average premiums and conversions. Once a policy is in force, Cavendish Online collects the commission from the insurer and pays the partner company their share. Cavendish Online is responsible for any claw back.
Ian Williams, managing director of Cavendish Online, said: “Our new white label service gives a variety of intermediaries the opportunity to add another income stream to their business with very little effort or specialist knowledge required. We have spent the last 15 years developing and refining our execution only service and we are one of the leading online providers of life and protection products in the UK with the highest persistency rates in the country, market leading conversion rates and very high customer retention.
“The addition of the new UnderwriteMe service will further benefit customers with pre-existing medical conditions for whom finding the best value life and protection cover has previously been something of a lottery.
“We believe there are thousands of mortgage brokers and other advisers out there with customers who need life insurance and protection products but simply don’t have the time, the skills or the administrative support available to turn those opportunities into additional income. As such they are potentially letting thousands of pounds a year in extra income walk away, often to competitors and frequently to see their customers pay more for their cover than they would do if the broker introduced them to their own white label service.
“With Cavendish Online providing the technology, the insurer relationship, the back-office support and taking on the regulatory burden, intermediaries now have a very simple and profitable route to providing a better experience for their customers whilst generating significant extra income.”