because of all the medical records , asking customers to go to the doctors to have fluids taken to check that the life insurers have all the data .”
While life insurers in the US inevitably dislike the two-year rule , Holweger takes a practical approach . “ The reality as well is sometimes missed in all this . As life insurers , we ' re there to pay claims . And 99 % plus of claims are paid whether it ' s in the UK or the US . But like I say , there ' s that significant difference between the two markets which historically has made life insurance in the US more complex and more expensive to buy .”
Changing the culture But it ’ s not only processes that need to be streamlined . Marketing , distribution and creating products that suit the needs and budgets of the uninsured , also must be prioritised . Holweger says that over the four years he ’ s been working in the US market , he has encountered several critical barriers that need to be addressed .
“ One of the key drivers of the protection gap is the cost of distribution . The need to have medicals , the fact it was taking months to get on cover , the fact that it ' s expensive ; these are all preventing the industry from reaching new markets . Very often , brokers say , ‘ I can ' t afford to talk to middle America and down because I don ' t make enough money because it takes so long to get on cover .’ There ' s such a complex process involved .
“ So , they just talk to the wealthy and sell life insurance to this audience . That is why the gap has developed . Nobody is talking to people in middle America and below about