The Association of British Insurers is now considering allowing insurers to change the definitions of certain critical illnesses again as a result of new medical evidence on rare bone marrow disorders.
When the ABI published the definitions in April, it was decided two rare bone marrow disorders should be defined as pre-malignant and become covered by critical illness (CI) policies at the point they turn malignant.
But subsequent medical opinions have suggested the disorders should be defined as malignant, and the ABI’s protection committee is therefore weighing up the opinions with a view to allowing insurers to make changes to the CI definitions.
Nick Kirwan, head of the protection committee, says the disorders are extremely rare but the ABI wants to make sure the definitions are completely accurate.
Once the committee has weighed up the evidence, one possibility is it will decide the new medical evidence is not sufficient to warrant any changes.
Alternatively, Kirwan says it may accept the new evidence outweighs the old and allow insurers to adjust their definitions.
He adds it is not a black and white issue and even if the ABI does favour the new evidence both definitions might still be valid.
Andy Milburn, IFA market manager at Progress from Royal Liver, says two providers – Royal Liver and Prudential – have already adopted the ABI’s CI definitions and others are considering implementing them shortly.
He states: “For providers, reinsurers and indeed advisers writing new products, to change the new definition wordings at this late stage in proceedings is, at a minimum, not treating anyone fairly and some would say totally lacking any thought of the impact of their request.”
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Emily Perryman on 020 7968 4554 or email [email protected].IFAonline
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