LifeSearch is in the midst of talks with several undisclosed life companies to create a protection policy offering clients the option to be fully underwritten upfront rather than at the claims stage.
Kevin Carr, head of protection strategy at LifeSearch, said it was working on the possibility of a trial period with a select group of 50 to 100 customers. The trial would just cover the life sector.
The trial period, of which there is no set timeframe yet, would enable firms to assess the consumer appetite for such a policy option and would be able to assess the IFAs' ability to advise on it.
Carr said it was instigating the discussions due to the huge problem of non-disclosure and consumer trust.
Several companies are said to be "interested" in the idea, though Carr declined to reveal how many.
Steve Casey, product manager at Bupa Individual Protection, said declined claims needed addressing and this initiative would provide new data. "The industry needs to decide what balance we should seek between price and claim payout percentage, as measures to reduce non-disclosure are likely to lead to increased premiums if more initial underwriting is done".
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