The Association of British Insurers (ABI) critical illness (CI) party is looking at the possibility ...
The Association of British Insurers (ABI) critical illness (CI) party is looking at the possibility of developing a severity-based product.
Speaking at the latest COVER Think Tank, Nick Kirwan, chairman of the ABI CI working party, said: "The concept of a severity-based product was raised during the review process in January 2005 and the ABI has committed to having a look at developing this."
While no definite proposition is being considered, Kirwan said the development of a new product had been postponed in light of the current CI definitions review, due at the end of April.
A product of this kind would, however, encounter stumbling blocks, he added. These include demonstrating to the OFT that it would be in consumers' interests for the industry to develop this product centrally and that this could not happen through market forces alone.
The concept of overhauling the current CI product has been widely discussed in the industry for some time.
