Protection industry welcomes TPD name decision

The protection industry has generally welcomed the ABI’s decision not to re-name Total and Permanent Disability (TPD) on critical illness insurance and the agreement on industrywide standards.

Gerry Warner, protection development manager at Zurich Life was involved in the ABI's discussions around redefining TPD and is happy with its decision to retain the existing definition.

"Having thrashed out the alternatives, we believe that TPD remains the most appropriate wording to convey what we are trying to achieve and the new statement will help provide more clarity for customers," he said.

"The industry now needs to work together to help further develop education and guidance for advisers in improving knowledge and understanding around this condition.

"TPD should not be used as a ‘broad brush' catch all term and is a condition in its own right. In our view, transparency is vital and any steps taken to increase certainty for customers should be welcomed," he added.

Chris Hulme, director of the Clayton Hulme Partnership, is largely positive about the agreement of industry standard definitions and also welcomed the education programme.

However, he wanted to reserve full judgement until the complete statement is published early next year.
"I hope it will help clear things up rather than muddy the water," he said.

"Creating industry standard definitions does provoke the providers to meet the standards and providers now like to exceed ABI standards. So if this enhances TPD it's got to be a good thing."

Peter Lurie, director of Proactive Medical and Life, was pleased the new name has been dropped, but suggested the only way to really enhance the understanding was through providing case studies.

"These things only cause a problem when communication becomes mixed up or not understood," he said.

"That's why case studies are really clear and to the point."