The Association of British Insurers is likely to hold another consultation on its proposals to scrap total permanent disability from critical-illness policies after negative feedback.
Plans to replace TPD with a set of new definitions as part of the ABI’s statement of best practice for CI have come under fire from members, including Munich Re and Pru Protect.
Pru Protect director of protection Kevin Carr suggests removing “total” and renaming it “permanent disability”. He says: “Clearer TPD wording would be more beneficial to consumers and the industry.”
Munich Re head of marketing Andy Milburn adds: “The ABI needs to take a step back and conduct further consultation.”
ABI assistant director of health and protection Nick Kirwan admits feedback has been mixed and says: “The plan was to issue a final paper by the end of the year then give our members until 2010 to implement any changes. But I think we would rather get this right rather then stick to a timetable.”