The ABI is currently consulting the industry to create a user-friendly guide to critical illness insurance definitions.
It said the guide was aimed at IFAs, customers, and claims assessors to help them understand the meaning of clinical definitions.
The guide should result in:
§ Fairer and more consistent treatment of customers by insurers at the point of claim;
§ Improved information through advisers at the point of purchase and the point of claim about what is and is not covered by policies;
§ Fewer disputed claims because there will be less confusion over the interpretation of medical definitions.
The ABI is also consulting on revisions to its Critical Illness Statement for Best Practice with the aim of incorporating forthcoming FSA regulations, and to improve the disclosure of information in the period between completion of an applications form and the day the policy actually starts.
ABI head of health Richard Walsh, said: “When we were working on the guide, we had two clear goals in mind.
“First we want to help everyone involved in the critical illness market get a clearer understanding of what is and is not covered by critical illness policies so that consumers get better advice.
“And, second, we want to help level the playing field between insurers when they assess claims.
“We hope the new guide will be an invaluable resource for IFAs and insurers alike. Some consumers may also find it useful to refer to the guide at the point of claim.
