Non-disclosure could be eradicated if clients submitted their full medical record to insurers alongside their protection application, according to CBK principal Peter Chadborn.
Norwich Union is researching a guaranteed protection product in a bid to reduce non-disclosure but Chadborn says this could confuse consumers by suggesting that non-guaranteed products are a gamble.
Chadborn believes he has devised a more effective way to kill off non-disclosure. He says if advisers submitted a copy of their client’s medical records with the policy application for insurers to review when underwriting, this would enable insurers to be sure of clients’ pre-existing medical conditions.
Copies of medical records, which GPs are required to provide within two weeks of a request, cost £10 to £50 but Chadborn believes insurers would prefer to reimburse clients for their medical records than pay for a GPR which is around £80.
He says: “Using this procedure, the insurer cannot claim reckless or inadvertent non-disclosure because they have been provided with all but a medical and both the adviser and the insurer will improve their persistency levels because the client will better understand the policy’s value. It is hard to deny that this process will improve TCF.”
He is now asking other advisers and providers for their views.