Non-contestability period will result in selective cover

Jason Hurley, head of sales and marketing at RGA UK, believes 5% of the population are “liars” and the introduction of a non-contestability period, which would make insurers prove non-disclosure within three years of the policy being taken out in order to decline a claim, would cause insurers to be more “fussy” about who they give cover to. He suggests some insurers may design simplified application forms which only allow a select group of people to take out cover and, as a result, the industry may move towards preferred life policies. Hurley also suggests a non-contestability period ...