Industry pressure on the ABI demands a closer look at Swiss Re's revelations
By Lucy Quinton
An industry expert has urged the Association of British Insurers (ABI) to avoid changing its updated Statement of Best Practice for critical illness (CI) unless new medical evidence, unveiled last month, is shown to be pivotal.
The call came after the ABI revealed its decision to review the CI definitions following new medical revelations made by Swiss Re.
Andy Milburn, IFA market manager at Royal Liver, believedthere are three realistic options that the ABI and Swiss Re should be pursuing. One is that if Swiss Re can not confirm its expert medical advice then the ABI should publicly declare that it will not be changing the wording between now and the implementation deadline of April next year.
However, Jonathan French, spokesperson at the ABI, refuted Milburn's request, arguing that: "Ultimately, it's important that we get this right and that we make a sensible and right decision so we will be taking time to consider this. The timing is unfortunate."
The ongoing dispute surrounds two rare bone-marrow diseases currently to be defined as pre-malignant and covered by CI when they become malignant. However, Swiss Re has now suggested the definition should be termed as malignant following new medical evidence.
Milburn went on to say: "Should Swiss Re decide to provide expert medical evidence and the ABI's Protection Committee consider it to be a minor issue when it meets on 4 December, then once again there should be no change at this time."
The biggest problem would be if both Swiss Re and the ABI do consider this potential amendment to be a significantly major issue.
Milburn has suggested the ABI could work with providers and advisers by providing a clear communication on why the issue is a major one, and what the ABI proposes to do between now and the April implement-ation deadline.
