Norwich Union has become the first insurer to apply a new critical-illness condition to all its existing policies retrospectively.
The firm’s critical-illness policyholders can now claim for traumatic head injury, a condition which NU added to its policies in January.
Lifesearch has been campaigning for life companies which add conditions when implementing the Association of British Insurers’ critical-illness standard definitions to apply them retrospectively.
Product development and delivery manager Andy Knowles says: “We looked at backdating traumatic head injury when we introduced the new critical-illness definitions and after additional publicity we looked at it again and decided to go for it. It feels like the right thing to do.”
Lifesearch head of protection strategy Kevin Carr believes that the financial industry has been missing an opportunity to score points with consumers and the media.
Carr says: “Norwich Union’s existing customers are now covered for an extra condition for free. The bottom line is that it is good for the custo-mer. NU has dipped its toe in the water and other compan-ies will have to stand up and take notice.”