Ageas has confirmed it is looking for a "clearer strategy" for its income protection (IP) product as the market moves to own occupation underwriting.
In a market positioning overhaul similar to the work that provider did on critical illness product last year, Andy Milburn, head of marketing at Ageas, confirmed that a move to own occupation for the insurer, which curently offers both any and suited occupation, was on the cards.
However he aired concern about those that would be excluded.
He told COVER: "One of the options is to not take IP seriously, to have a product basically in the market as a hygiene factor, which we obviously don't want to do.
"Another option is to look at our values to evolve the product, which would be down the own occupation route, which more and more advisers are asking providers to do."
Alongside the overhaul Ageas already has an internal group assessing the use of functional assessment tests.
"We are looking at what we are doing with activities of daily work (ADW) in a different way," said Milburn.
"If we all head down the own occupation route, and there are 11 providers who could do that, then what do we do with those that we would exclude from that cover, who cannot get own occupation?
"The major area that the industry would miss ADWs is houseperson's cover, because how do you assess them as unable to do their role if you didn't have some sort of functional assessment?"
Milburn stressed that the firm has no timescales and no numbers to date and the firm could yet choose a path where the ability to claim and to be assessed at the claim stage is made easier, with a clearer, more transparent contract for the customer.
"We need to think of the consequences as we go down any particular path," said Milb
