The majority of protection providers are waiting until the April 2007 deadline before they adopt the Association of British Insurers' new critical illness definitions.
The definitions were introduced in April this year and the ABI said at the time it wanted insurers to adopt the changes “as soon as is practical” and at the latest by April 2007.
Nick Kirwan, head of the ABI’s protection committee and protection market director at Scottish Widows, said earlier this year: “I hope insurers will want to adopt [the statement] as soon as they can because consumers want it and awareness depends on everyone using it.”
Progress from Royal Liver was the first provider to launch a traditional critical illness (CI) product incorporating the standards in October, while Prudential claims its Flexible Protection Plan – launched in July – goes beyond the ABI’s definitions.
But the majority of providers appear to be waiting until the April 2007 deadline before they incorporate the changes.
Scottish Widows has already implemented the changes in products sold through Lloyds TSB, but it says it will incorporate the changes for products sold through IFAs next year.
Norwich Union says it will adopt the definitions in February, while Legal & General will adopt them in March.
Friends Provident states it is in the process of reviewing and implementing the definitions and expects the changes to be fully implemented in quarter one of 2007.
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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