Insurers say ABI's new TPD definitions are too complicated
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Insurers believe that the Association of British Insurers’ new name and standard definitions for total permanent disability are too complicated for consumers to understand.
In June, the ABI proposed replacing TPD with the name “irreversible life-changing disability” and a range of standard definitions for the industry to adopt.
But research from Medicals Direct and Le Beau Visage shows that some in the protection industry do not support the ABI initiative.
It found that out of 29 senior underwriters, almost 30 per cent believe the ABI’s approach is too complicated for consumers to understand. Twenty-six per cent say they would drop TPD as a benefit of CI plans because it is too complicated.
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Readers' comments (4)
Anonymous | 19 Nov 2010 11:37 am
To call this the ABI's inititiative is to ignore the fact that the proposals are the result of the views of insurers who have sat on the working group and probably are from the same companies as the above survey.
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Jerry Brown | 23 Nov 2010 8:28 am
Agree, but the first set of proposals received a luke warm reception in the consultation process and were roundly rejected by members at the TPD Workshop a year ago.
I do not recall changing the name to be part of the recommended action emerging from the work done that day.
It did recommend a number of other actions taking place e.g. training inititiatives, improved support documentation etc but no progress has been made in these areas at all?
So what has happened in the last year - absolutley nothing to my knowledge other than pursuing an action that has limited or no support across the industry.
If resolving the issues around TPD is an important topic fro the ABI, it needs to get on with the action that its members proposed rather than following its own agenda.
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Anonymous | 23 Nov 2010 1:54 pm
Jerry - it seems that yesterday's meeting has achieved a way forward with the customer needs being at the forefront as should be the case !
Good news I think for all concerned.
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Jerry Brown | 23 Nov 2010 3:10 pm
Aha, so which member of ABI Secretariat or the Working Party are you then....??
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