The ABI is battling with the British Medical Association to stop an increase in medical report fees which could see the price of life insurance and critical-illness cover premiums rocket.
The ABI is meeting this week with the BMA, which is planning to more than double the fee for a gen-eral practitioner's report from £30.10 to £66 and more than triple the medical examination report fee from £42.80 to £132.
The BMA says the newly designed standardised general practitioner's report form takes longer to complete than previous versions and warrants the big increase.
Life offices say they would have to raise premiums and rethink when to ask for medical reports.
ABI spokesman Malcolm Tarling says: “We do not think a 300 per cent increase is reasonable. A standard increase would not have a knock-on effect on premiums but a rise of the magnitude the BMA wants could have further implications.”
Clerical Medical spokesman Tony Bloomer says: “This would have a direct hit on the costs of premiums. The resulting inc-rease in the cost of products would come through in premiums. We would have to think about asking for fewer general practitioner's reports.”
Scottish Equitable Protect head of underwriting Matt Rann says: “The extra costs would come through premiums. Many companies would not bother with the reports and take a harder view on risk, meaning the cost will go back to the consumers.”