There is no doubt the critical illness (CI) market is set for some big changes over the next f...
There is no doubt the critical illness (CI) market is set for some big changes over the next few years. Industry experts at the latest Cover roundtable agreed current products are unsustainable for the long term and the market needs to take a fresh look at product design. Simplicity and affordability were cited as the most important elements to incorporate in the second generation of products and current problems regarding disclosure also need to be addressed to ensure a healthy future for the market.
However, all of this is easier said than done. Just as CI providers have been watching the market to decide when to increase guaranteed rates or ditch them altogether, it appears that product designers are also taking the steady but sure approach to developing the next batch of plans.
UnumProvident took a brave leap last year with the release of its Elixia 123 plan ' although the product received mixed reviews, which may have warned other providers away from innovating too soon. However, Skandia's recent move to offer cover for low grade prostate and breast cancer looks to be a step in the right direction in finding a solution to overcome future medical advances.
As exclusively revealed in this issue, the ABI is attempting to tackle the issue of simplicity by discussing the possibility of an over-arching cancer definition. However, this is still in early stages and there are a number of barriers to overcome. Change is inevitable, but finding the perfect model to base future products on is not. Innovation will drive further change ' but it is anyone's guess as to which provider will be first to place all their cards on the table.
Kirstie Redford, editor
