Advisers will be asked which direction the market should take
IFAs are to be invited to take place in a research programme that aims to determine how critical illness (CI) products will be designed in the future.
Legal & General (L&G) has hired research agency Quaestor to question hund- reds of advisers about their views on which direction the market should take. The move follows months of debate, in which many industry pundits agree current products are unsustainable.
Advances in medical science and a predicted 'claims explosion' have led many insurers to hike premiums, especially guaranteed rates.
With the majority of CI plans being sold by intermediaries, L&G is asking the IFA community how they would like to see products evolve to provide a solution to the market's current dilemmas.
"So far we have only heard the views of providers and reinsurers and we really need to get some balance. We feel the time is right to bring IFAs into the debate - they are, after all, the makers and shakers in this market.
"Their contribution has been immense in growing the critical illness market and it is only right that as we look to the future IFAs have an input.
"They can bring to the table experience of critical illness claims as well as at the point of policy issue," said Ronnie Martin, protection director at L&G.
Martin said the main areas that would be researched were testing concepts around severities of illness to see if IFAs liked the idea of products offering different levels of cover; views on how lifestyle can be impacted by a serious illness; and opinions on pricing levels, such as when a guaranteed premium bec- omes unaffordable.
Researchers will also ask advisers' opinions on the Association of British Insurers' Statement of Best Practice for CI cover. This will include views on how important the use of common definitions for core illnesses is.
A pilot study among a number of IFAs has already taken place to ensure the right issues are covered and that respondents can comment objectively. L&G has promised to donate £5 to a cancer charity for every IFA who takes part. Results of the study are due to be published by the end of this year.
