# Is Cheapest Protection Best Advice



## Beckham (28 May 2002)

I have to hand an Irish Life brochure promoting some on-line underwriting service.<!--EZCODE QUOTE START--><blockquote>*Quote:*<hr> <!--EZCODE ITALIC START-->_ <!--EZCODE BOLD START-->* "...Cheapest does not mean best.  A Broker will easily be able to demonstrate to the Central Bank that B-line offers the best overall service proposition and therefore is 'best advice'..."*<!--EZCODE BOLD END-->_<!--EZCODE ITALIC END--><hr></blockquote><!--EZCODE QUOTE END--> Hmmm!  It seems to me that if the customer was aware that the protection plan was available at cheaper rates she would not necessarily agree with these sentiments.  Can any of the "Best Advice Theologians" (<!--EZCODE ITALIC START-->_ Mith_<!--EZCODE ITALIC END--> for example)   give some views as to whether Irish Life's interpretation of the Best Advice dogma is sound or heretical?:rolleyes


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## Lucretia1 (28 May 2002)

Good morning Beckham. 

For the benefit of those outside the insurance industry, B-line is Irish Life's online life assurance application strategy for brokers and agents, where one can apply for life assurance online, with rapid turnaround of policies, an ability to print off cover notes at point of sale by the broker etc.  

I am a broker but I don't use B-line for the simple reason that Irish Life's life assurance rates are rarely if ever the cheapest.  I would also question Irish Life's comment that B-line offers the best overall service proposition, given that Eagle Star have a similar set-up which seems to work quite well.  

I would imagine that one should only recommend Irish Life in a situation where it is clear that speed of processing is of primary importance to the client, and that you have clearly explained to the client that while XYZ Life have the same cover available at a lower premium, Irish Life's B-Line set-up will enable the application to be processed more quickly.  The client should agree to this in writing as part of the "Reasons Why" letter.  That's not a Central Bank opinion, by the way, just my own cent's worth as to what I'd do.  

On a related note - I must commend Eagle Star for offering discounts from 5% to 15% over their standard rates for online applications.  I'm not aware that Irish Life offer such discounts.  My view is that Eagle Star have taken the correct stance - obviously, online applications significantly reduce their costs of processing (cost of printing application forms, cost of data input etc.) and so it's only right that some of these savings should be passed back.  

Now what I'd really like to see is some of these cost savings being passed back directly to those who are having to spend more - brokers are now doing data input and printing off application forms - that's an extra cost - how are we to be repaid this extra cost?  

L


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## Dear (28 May 2002)

*Cheapest*

But Eagle still aren't cheapest?? even at 15%. L. Estar set up this system, force you to use it (if you want the discount) - at extra cost to yourself. At least ILAC consult with their intermediaries.

Dear


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## Lucretia1 (28 May 2002)

*Re: Cheapest*

<!--EZCODE BOLD START-->* "But Eagle still aren't cheapest?? even at 15%."*<!--EZCODE BOLD END-->

The 15% makes them cheapest for some age/smoker/sex profiles.  

<!--EZCODE BOLD START-->* "Estar set up this system, force you to use it (if you want the discount) - at extra cost to yourself. At       least ILAC consult with their intermediaries."*<!--EZCODE BOLD END-->

Or to phrase it differently, Eagle Star offer you an incentive for using their system - cheaper rates.  No-one's forcing you to use it.  You can still use their paper applications.  Irish Life don't even bother offering an incentive.  

<!--EZCODE ITALIC START-->_ (In case anyone thinks otherwise, I've an agency agreement with both companies but have no other interest in either.)_<!--EZCODE ITALIC END-->  

L


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## AA (28 May 2002)

*Best Advice*

I agree with Irish Life.  The CB are very relaxed about what constitutes Best Advice.   When it comes to protection rates, these are so cheap anyway, that other considerations come to play.  Paying say 20% over the odds for term assurance is a small price to pay for a cup of coffee and a friendly chat compared to facing the hostile environment of a Big Bank.:smokin


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## Liam D Ferguson (29 May 2002)

*Gourmet Coffee*

I hope you're joking - 20% difference on a small €15 per month, 20 year policy is €720.  That had better be some gourmet coffee and bank hostility verging on threats of Grievous Bodily Harm.


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## Su (30 May 2002)

*Of course cheapest is best*

Couldn't agee more Liam.

Of course cheapest is best. -  hence competition enters into the calculation.

Su


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## Ciara (23 Jul 2002)

*Term Assurance Rates*

In the motor insurance market people shop around each year for the best quote.
With the way the Term Assurance market is moving... constant lowering of rates,it would nearly pay someone to shop around each year.


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## Luas (24 Jul 2002)

*Term Assurance*

I am of the firm belief that business that comes on price will move on price


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