The insurance market is neglecting the needs of disabled people, leading to losses from a market whi...
The insurance market is neglecting the needs of disabled people, leading to losses from a market which is estimated to be worth more than £40bn a year, according to a guide published by the Association of British Insurers (ABI).
The guide, which targets insurers who provide life and disability insurance and those working in the industry, says providers should adopt a more positive approach to people with a disability.
Mary Francis, director general of the ABI, said: 'The guide marks an important step forward, promoting recent legislation, but also developing best practice in the industry.'
Nick Kirwan, chairman of the ABI Disability Discrimination Act (DDA) Working Party, said: 'Since December 1996, when the DDA came into force, insurers have been building up practical experience, but have amassed questions when handling disabled customers. It is now a good time to answer these questions and spread best practice and consistency across the industry, so there will be a level playing field for people taking this cover.'
The guide says the DDA should always be borne in mind when designing policies and that insurers are generally free to decide on the scope of cover offered.
It states: 'If certain conditions are not included within the scope of the cover, it is good practice to make this clear to all potential customers before they take out the policy by giving full details of what is (and is not) covered by the policy.' Further recommendations include:
• Insurers should offer as much cover as possible and explain the reasons behind underwriting and claims decisions.
• Staff should be aware of the requirements of the DDA.
• People with disabilities should not be excluded because of communication difficulties and literature should not be discriminative.
• Insurers should target people with disabilities through selective media.
• Underwriting philosophy and the claims procedure should be clear and accessible.
