Insurance products that can be bought in minutes through an app, without medical examinations, brokers or lengthy underwriting, changed what cover is realistically accessible to people who would never have completed a traditional application. For a small business owner, the relevant shift is that certain kinds of cover moved from a months-long process to a same-day decision.
Reducing friction in a product people already need but avoid buying is a recurring pattern in financial services, and it works because the barrier was never the price but the effort.
Friction, not cost, is often what prevents purchase
Many people who need cover do not buy it because the process is slow and intrusive rather than because the premium is unaffordable, which means removing steps from the process converts more customers than reducing the price would.
Simplified products suit straightforward needs
App-based cover generally addresses defined, simpler needs, accidental death, basic income protection, while complex circumstances still warrant proper advice, and understanding which category a business owner falls into determines whether a simplified product is adequate or a false economy.
Business owners carry personal risk the business depends on
In owner-managed businesses the owner’s income, health and continuity are effectively business risks, which makes personal cover a business continuity question rather than a purely personal financial one.
Read what a simplified product actually excludes
Products sold with minimal underwriting typically compensate through exclusions and waiting periods, which means the practical work for a buyer is understanding precisely what is and is not covered rather than assuming a fast purchase provides comprehensive protection.
Insurance products sold this way still have to meet conduct standards, and the register of authorised providers is maintained by the Financial Sector Conduct Authority.
Frequently asked questions
Why does removing friction sell more insurance than lowering price?
Because many people who need cover avoid buying it due to slow, intrusive processes rather than affordability, which means simplifying the process addresses the actual barrier.
Are app-based insurance products suitable for everyone?
They suit defined, straightforward needs. More complex circumstances still warrant proper advice, and treating a simplified product as adequate for a complex situation is a false economy.
Why does personal cover matter for a business owner specifically?
Because in owner-managed businesses the owner’s income and continuity are effectively business risks, making personal cover a business continuity question rather than a purely personal one.
What should a buyer check on a minimally underwritten product?
The exclusions and waiting periods, since products sold with little underwriting typically compensate through these, and a fast purchase does not imply comprehensive protection.
Does this shift benefit small business owners particularly?
Yes, since business owners frequently lack the time for lengthy application processes, meaning products that compress the process into minutes make cover realistically accessible where it previously was not.
Further reading
Originally published in November 2017. Updated September 2026 and expanded from the original product announcement into what low-friction insurance means for business owners and what to check before buying.
