Customers do not think publishing scary statistics equals scaremongering, claimed Nick Kirwan, chai...
Customers do not think publishing scary statistics equals scaremongering, claimed Nick Kirwan, chairman of the Protection Committee at the Association of British Insurers (ABI).
Kirwan told delegates at the COVER Protection Forum that providing helpful information like statistics should not be classified as scaremongering, and added it was important to understand the difference between the two.
According to consumer research undertaken by the ABI, participants found the statistics provided were "scary, but not scaremongering".
He added, however, that it is important not to make the statistics too personal as that could easily cross the line.
Talking about the ABI critical illness (CI) review, which will come into effect in April next year, Kirwan said there needed to be more sustainable definitions. "It's a great idea if insurers can define CI in the same way and then consequently, all insurers - and perhaps advisers too - will adopt standard definitions," he said.
Future medical advances also had to be taken into consideration ensuring cover is retained today and in the future. The approach was to consider the three most significant illnesses: cancer, heart attacks, and strokes along with progressive illnesses such as Alzheimer's and Parkinson's.
Kirwan said: "Medical science will do three things to illnesses: prevent illness in the first place; be able to diagnose illness earlier; and be able to treat an illness better."
Moreover, the current review of CI also took into consideration the need to further improve clarity for customers and to help ensure CI is sustainable to meet consumer needs at an affordable price.
In addition to updating the CI definitions guide, the Protection Committee now plans to look at life, income protection (IP) and CI in a more cohesive manner.
Kirwan also revealed that the ABI will be holding a workshop on how to simplify IP on 17 November.
