Zurich has announced it is cutting premiums on its critical illness (CI) plans where exclusions are applied for cancer or Multiple Sclerosis.
The insurer, which paid out almost £60m in CI claims in 2008, says the move is "the right thing to do" and follows an industry-wide campaign, led by broker LifeSearch, to encourage providers to cut premiums where exclusions apply.
Zurich is also adding six new CI conditions, extending the total number covered to thirty eight, as well as enhancing a number of its existing definitions.
"This is the right thing to do," Zurich UK Life protection management director Peter Hamilton says.
He adds the addition of six conditions has not been to "simply play the numbers game". "We have considered, but expressly rejected, including certain conditions, such as diabetes and rheumatoid arthritis," he says.
"The definitions currently used in the market for these conditions are restrictive and will result in very few claims being paid, but they could easily lead to customers believing their cover is more extensive than it is."
The latest enhancements apply to Zurich's Level Protection and Decreasing Mortgage Plans.
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