Royal London is piloting a protection service with London & Country that uses algorithms to offer an instant guaranteed quote on life cover.
The service, which is called Streamlined Mortgage Protection, takes data from the mortgage fact find before asking three medical and three lifestyle underwriting questions, at which point customers receive an instant decision.
Royal London said it expected 80% of customers to be accepted.
David Hollingworth, associate director of communications at London & Country, said: “Too many people don’t take out any form of cover at all because it’s too complicated a process from a consumer point of view.
“Having the quoted price change through the application process is just another thing that can put off customers.
“This is giving them what they’re used to with other services – an instant quote that will be guaranteed.”
Clearly the ease at which L&C customers will be able to take out protection gives Royal London an advantage over other insurers.
But Hollingworth added: “Customers are free to look at the cheapest options across the rest of the market.
“Some will want this route – some will want the other.
“It’s an exciting prospect and you wonder whether other providers will go in the same direction.”
Currently Royal London only offers a life quote using the service but it will add critical illness to Streamlined Mortgage Protection in future.
Hollingworth said he’d be happy for income protection quotes to eventually be generated in the same way.
Debbie Kennedy, group head of protection strategy at Royal London, said: “This innovation is part of our drive to improve the way customers can access protection cover.
“We have invested in new skills and technology to challenge the traditional underwriting approach.
“We believe this development will be pivotal to overcoming one of the biggest barriers to selling protection alongside a mortgage – the time taken to complete a protection application on top of a mortgage application.
“L&C share the same values and it has been great to work with a partner who is using new technology to help grow the protection market.”