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40% Have false CI expectations

Nearly 40 per cent of consumers expect to get a payout for conditions that are not covered by their critical-illness policy.

Research from Scottish Equitable Protect shows that only 60 per cent of consumers understand that providers would refuse to pay a CI claim for illnesses not covered under the policy terms.

The research also found that 31.6 per cent of the 1,536 consumers surveyed think that a provider would pay out even if they had prior knowledge of an illness and did not disclose it on the application form.

The research was undertaken as part of a nationwide marketing campaign ScotEq is launching next month to increase consumer understanding of CI products.

Scottish Equitable Protect head of underwriting Matt Rann says: “I find these percentages alarming to say the least. It highlights the significant percentage of people who do not understand the importance of non-disclosure. Yet the industry has moved to a place where there are warnings on every piece of literature. We are going to have to think of a different way of tackling this.”

CBK principal Peter Chadborn says: “It proves those theories which we have always held about the importance of advice. These are quite worrying figures and it shows that a huge amount of education is needed there.”


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