The suggestion in last week’s Money Marketing that Swiss Re is seeking to avoid valid claims for two cancer conditions is, unfortunately, misleading. Swiss Re’s dialogue with the Association of British Insurers on critical illness cancer definitions is not directed at preventing consumers from claiming for malignant myeloproliferative disorders.In earlier stages of draft-ing, the cancer definition in the April 2006 version of the ABO Statement of Best Practice for Critical Illness Cover originally contained a separate and specific exclusion of myeloproliferative disorders, mentioning essential thrombocythaemia (ET) and polycythaemia rubra vera (PRV) as two examples. ET and PRV are part of the wider group of myeloproliferative disorders that also includes myelofibrosis and chronic myeloid leukemia. Medical opinion differs on the classification of ET and PRV, with some haem-atologists saying they are malignant immediately at onset. Others disagree and see a distinction between these and disorders such as chronic myeloid leukemia. The intention of the original revisions to the definition was to provide clarity on this point and to ensure that the definition was future-proofed against adverse trends in medical opinion. Life insurers, of course, have no problem in accepting that, where ET or PRV undergo leukemic to change, this would immediately qualify as a valid claim under both the old and the revised cancer definition. During the latter stages of the review process, resulting in the April 2006 statement, these two exclusions were combined because of concerns regarding the complexity of the wording and issues with consumer understanding. The effect of combining these exclusions, and therefore the problem with the current wording, is to imply that ET and PRV are automatically pre-malignant. This clearly conflicts with one body of medical opinion and increases the potential for claims disputes. Swiss Re is asking the ABI to consider amending the Statement so that a specific exclusion relating to ET and PRV is put back into the cancer definition – the pre-malignancy exclusion omits the two examples cited alongside. We are asking for these changes to be made because, as currently drafted, part of the exclusion could be ineffective and viewed as technically incorrect. More importantly, there is increased potential for consumer misunderstanding and claims disputes There is a limited time window for this to occur, because insurers must change their literature and systems ready to implement the revised Code of Practice early next year. We look forward to continuing our dialogue with the ABI and, we hope, to securing amendments to the April 2006 code to remove the ambiguity and improving clarity. Jerry Brown UK Head of Underwriting and Claims, Life & Health Swiss Re, London
What an exciting time to be involved with the IFP, after an excellent conference where the new joint venture with Manchester Metropolitan University (MMU) was announced. The conference was oversubscribed and there was a tremendous atmosphere.
Altmann says legal precedent has been broken as 75,000 fight for £3bn in compensation
Lenders pay intermediaries to kill off remortgage market
A new website has been launched for IFAs called tcf-online.com to help them comply with the FSA’s treating customers fairly guidelines.
Having stabilised at around $65 a barrel, many investors are questioning if the price of oil will rise, and when. Richard Hulf provides his view. Richard Hulf, manager of the Artemis Global Energy Fund, sets out his thoughts about how the oil price may move through the next six months. At the start of the […]
- Top trends
- Top trends
- Revealed: The FCA’s findings on ongoing advice
- How much are advisers charging for pension transfers?
- Lifetime allowance 2018/19 increase confirmed but pensions absent
- ATS staff departures continue as platform commits to improved adviser experience
- SJP trainee adviser banned and fined for faking qualifications
News and expert analysis straight to your inboxSign up
Latest from Money Marketing
As the outlook for the UK’s economy remains uncertain, how can advisers prepare portfolios for any change in inflation? As higher inflation fails to appear on the horizon and wages grow faster than expected, fund managers are weighing up their portfolio moves for any potential changes in the economy. The UK consumer prices index rose […]
IFA directors Kevin and Cheryl Neal have been banned from being company directors by the Insolvency Service for six and four years, respectively. The married couple ran the now-defunct Hertfordshire-based Kevin Neal Associates Wealth Management. They were disqualified for taking assets from an insolvent company. The firm had been incorporated to take over the business interests […]
Hartley Pensions has bought the “untainted” assets of the Lifetime Sipp Company, which went into administration earlier this year. An update published today on the website of Lifetime’s administrators Kingston Smith & Partners says Hartley Pensions has also agreed to administer the tainted Sipps held by Lifetime Sipp. The administrator described tainted assets as those where […]