The ABI's long-awaited review of the statement of best practice for critical illness (CI) cover has ...
The ABI's long-awaited review of the statement of best practice for critical illness (CI) cover has arrived but it hasn't received the warm welcome the working party was hoping for.
The main bones of contention are around the two levels of cover for cancer and the concept of 'future-proofing', which is at the heart of the review process. Macmillan Cancer Relief has attacked the proposals as a move to make it more difficult for cancer sufferers to claim. Some advisers say that the concept of future proofing makes them uncomfortable as the definitions are not concrete and could change further down the line.
It does seem that future proofing only serves to protect insurers, which goes against what the working party says it has set out to achieve. If advisers are unclear about any new changes that should come into effect, they will be reluctant to sell the product, which is a massive problem in a sector blighted by plummeting sales. And if the main beneficiary is the insurer, then it will not do much to enhance the reputation of the industry.
However, proposals to improve clarity must be applauded. It is crucial in today's increasingly litigious society that consumers understand what they are getting, especially with financial services. Therefore, anything that attempts to improve understanding among consumers and restore faith in the industry is welcomed.
But nonetheless, the review has raised some issues of concern. The consultation process offers all those affected a chance to raise these worries and highlight any potential problems they think may arise further down the line. Now is the time to voice your point of view. Otherwise your opinions will not be heard.
