Delegates at the London COVER Forum called for standard application forms for protection products, w...
Delegates at the London COVER Forum called for standard application forms for protection products, writes Paul Robertson.
Throughout the panel question and answer session, there was widespread agreement on the floor that standardisation should be pursued. However, members of the panel highlighted problems.
Nick Kirwan, chairman of the ABI's Critical Illness Working Party, said standardisation was unlikely to happen in the near future. 'This has been discussed in working parties but realistically it is a long way off. However, it could help reduce incidence of non-disclosure,' he said.
The danger of impairing competition through standardising applications was pointed out by Richard Walsh, head of health at the Association of British Insurers. He said: 'There is pressure from the Ombudsman to make elements of the forms standard, particularly on the medical underwriting side. I see this as a big exercise with no real benefit at the end, so I would be cautious.'
Mark Preston, underwriting manager at Scottish Equitable Protect, said the industry must work together if standardisation is to ever come to fruition. 'Companies would need to talk to each other. It is perhaps something the industry should get together about in the future,' he said.
Sue Wilkinson, regional protection manager at Scottish Provident, was not in favour of standardisation. She said: 'I am in favour of the less simple forms in order to prevent innocent non-disclosure. Companies have deliberately added questions to their forms so that claims will pay out for that particular product.'
