The ABI plans to revise its critical illness statement of best practice, saying the changes will bring its guidance into line with the FSA's proposals for statutory regulation, which is due to come into effect next January.
As reported in Money Marketing two weeks ago, the trade body is also compiling a reference guide on CI terminology to help bring clearer medical definitions and consistency to the industry. The ABI wants IFAs, consumer organisations and the Financial Ombudsman Service to put forward their views on the guide.
The association hopes the guide will help insurers treat customers more consistently when they make a claim. The guide, which will be available to consumers at the point of purchase, will spell out what is covered under CI. The ABI expects there to be fewer disputed claims in the future.
ABI head of health Richard Walsh says: “First, we want to help everyone involved in the CI market get a clearer understanding of what is and is not covered by policies so consumers get better advice. Second, we want to help level the playing field between insurers when they assess claims.”
Capital Asset Management adviser David Dawson says: “This can only be a good thing on the basis that definitions have not being stringent in the past. The guide will certainly help with compliance.”