The target market is still medium to large firms but Royal & SunAlliance has made two significant changes to the product to cover what it claims is an underdeveloped part of the market.
Firstly, it is now the only group critical illness product on the market to offer employers the option to remove the related conditions exclusion for their employees.
This prevents claimants with one condition from claiming if they come down with a related condition. One example might be losing the power of speech following a stroke, or blindness as the result of extremely high blood pressure.
Secondly, group critical illness cover will provide a claimant with a lump sum of up to seven times their salary, as opposed to the market norm of four times. The company is hoping that this will attract firms which have previously not considered similar products as the lump sums provided were too small.
Removing the related conditions exclusion is unique and should provide the product with flexibility, but there will be higher premiums as a result. Providing a lump sum of seven times the employee's salary is not a new idea although it is not very common. However the combination of the two should make this an attractive product to many companies.