View more on these topics

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.”

Recommended

GHL links with Key for equity release

Key Retirement Solutions has agreed to take equity-release referrals from the GHL Group. Last week, the FSA called for advisers that do small amounts of business to pass leads to specialist firms or quit the market.

IFA committee to oversee Threesixty cautious fund

Threesixty is giving its IFA clients the chance to influence the running of its new cautious managed fund. Premier Asset Management, will which manage the Kingsway managed income fund, will meet a quarterly committee made up of six IFAs who have the most assets invested in the fund at that time. The fund will aim […]

Mortgage broker hit by FSA disciplinary action

The Financial Services Authority has today publicly reprimanded a mortgage broker and published a ‘statement of misconduct’ for failing customers.In the first such disciplinary case against a senior manager of a mortgage and general insurance broker, Steven Leslie Davis was found to have “fallen well below acceptable standards in the way that he carried out […]

Eastern promise

Matt Goodburn says fund firms are sticking with Eastern Europe and particularly Russia as they believe in the fundamentals despite recent downturns

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment