The project to bring about an income protection (IP) quality standard (QS) has been abandoned.
A feasibility study found that, while consumers supported the concept, the QS would not cause them to buy IP.
A consortium of income protection providers, Claims Consultant Karin Lloyd and Richard Walsh, director of SAMI Consulting attempted to create a QS framework which would eliminate as far as possible consumer detriment issues and deliver market growth.
Key points were: products should cover own occupation: no pressure sales; no blanket exclusions - eg for mental illness - but partial cover offered where specific exclusions are applied; guaranteed payouts; no continuing obligation to disclose; and publication of claims stats.
Walsh commented: "On reflection, what we were doing was similar to what the ABI did on non-disclosure guidance. Consumers don't buy products because of it - but if they do buy them they can have peace of mind.
"As for growing the market - that will depend on providers' own marketing and commitment to IP. There is no "magic bullet".
The four insurers were Cirencester Friendly Society, Exeter Family Friendly, Friends Provident and HSBC.
