Speaking at MM Live last week, Kirwan said consumers watching TV programmes like Watchdog will think the industry is “bonkers” because some policyholders are getting payouts but others are not, despite having the same or similar conditions.
He said the ABI’s statement of best practice on critical-illness definitions is going some way to solving the problem of non-disclosure and tackling consumer understanding of what they are covered for.
Kirwan set out the ABI’s main focus areas for 2007, including income protection policies and claims for total permanent disability.
He said more than 50 per cent of TPD claims are turned down, despite TPD accounting for only 3 per cent of CI claims.
Kirwan said: “TPD is a small part of the claims that insurers get at present but it will be a growing part of the claims’ experience on critical illness in the future.”