News Review: Protection Do we have a two-tier critical illness cover market?
by Kevin Carr chief executive of the Protection Review and MD of Kevin Carr Consulting
according to a range of sta- tistics, cancer represents around two thirds of all crit- ical illness claims in the uK. it is also widely considered to be one of the main rea- sons why most people con- sider buying the product. However, not all lead-
ing critical illness policies cover early stage cancers, such as prostate or breast cancer. Within the industry it is understood that such early stage cancers may not spread to other parts of the body and as such may not yet be life threatening, which means they are unlikely to
meet the agreed standard definitions for cancer. While this helps to keep premiums at a more afford- able level, for most people cancer is cancer and any diagnosis is likely to lead to a similar reaction. even with early stage breast can- cer there could be a notable amount of time away from work and treatment, such as mastectomy or lumpectomy, could result in the need for replacement breast surgery. While such cancers are
not likely to result in a full pay out an increasing num- ber of providers will now pay a partial amount upon claim, such as 10 or 25% of the overall sum assured, which is raising questions about those companies which do not yet offer such cover. mortgage and protection
The idea of independent and unbiased protection training has been called for, and talked about, for as long as I can remember. In-house intermediary and network training is typically good, though it can be costly for small businesses to deliver and keep up to date. While good life office training is very widely available it can sometimes lean towards product push, perhaps unintentionally or oc- casionally without really helping the audience to fully understand the market and grow their business. The Protection Review is looking to team up with the Personal Finance Society (PFS) to provide independent specialist protection training aimed at improving knowl-
intermediary alan Lakey agrees: “the trend towards adding additional condi- tions has now moved to- wards adding worthwhile conditions. the truth is that the conditions that need to be covered are the very ones that insurers will be reluctant to include. By of- fering limited cover insur- ers are finding that common ground between their needs and that of their clients.” this is of course the criti-
cal illness market though and things are never quite black and white. the specific definitions should always be considered. taking prostate cancer as an example, some providers require ongoing treatment as well as diagno- sis, although the medical ad- vice can sometimes just be to see what happens which
Independent protection training required
edge and understanding of the industry at all levels. We hope to deliver sessions across the UK
and wherever they are called for. One of our key aims is to deliver training from independent ex- perts without promoting any specific products. The workshops will cover all aspects of the market including products, underwriting, claims, regulation, sales and technology as well as current issues and changes in the mar- ket, such as new products, changes to state benefits and any changes to TPD (total and permanent disability). We are currently discussing and building both the content and format and we are open to ideas and feedback.
requires no treatment. and while it is great that more providers are beginning to cover mastectomy, less than a third of dciS diagnoses are treated this way, which partly explains the poten- tial importance of covering lumpectomy as well.
News in brief
• Online searches for protection products increased by 31% this year according to Unbiased.
co.uk • Bupa has added a number of new conditions to its critical illness cover plan which now offers 11 ABI+ conditions • According to Sainsbury’s £318 billion of mortgages are not protected by life insurance • PruProtect has added eight new conditions to its serious illness cover plan which now covers 161 conditions • Scottish Provident has repriced its life and critical illness cover products • PruProtect has launched a new mobile application allowing intermediaries to obtain quotes from any phone with internet access • Aegon head of individual protection sales and distribution development Alun Beynon is to leave the company in December
mortgage introducer DECEMBER 2010 11
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