Royal London has launched its long-awaited life cover for people with Type 1 or Type 2 diabetes.
The policy has the flexibility to reduce premiums by up to 40% to reflect how well the customer is managing their diabetes by sharing their HbA1c test result on an annual basis.
Premiums are guaranteed never to rise higher than the starting premium to give clients certainty they will be able to maintain their cover, the insurer said.
The customer journey is underpinned by the Kalibre insurtech platform that uses an "innovative" risk assessment approach, supported by continuous underwriting.
The platform "revolutionises" the process of buying life insurance for people living with Type 1 and Type 2 diabetes by improving the time taken to accept an application from weeks to less than an hour.
Royal London worked with Blue Circle Life (part of South African life insurer AllLife Group) to design and develop the Kalibre Platform.
The product is initially available from a small number of adviser firms but Royal London said it had plans to launch to the wider adviser market later this year.
Group head of protection strategy Debbie Kennedy said: "This cover is specifically designed for people who have diabetes, using a real time, robo-underwriting process to make it easier for advisers to secure life cover for their customers at point of sale.
"According to Diabetes UK more than 4 million people in the UK are living with diabetes. Securing life cover for people who have been diagnosed with a chronic condition is not always straightforward and can involve detailed medical questionnaires, followed by exclusions, additional premiums or being declined cover, depending on the nature of their condition and how well they manage their health.
"We built our proposition to support these types of customers as the process of applying is one of the main reasons they give for not taking out life cover."
Yesterday The Exeter launched its ‘Managed Care' life product into the adviser market - which covers people with Type 2 Diabetes or a High BMI.
LifeSearch life office relationship director Emma Thomson said: "Royal London's new product is a positive move forward for our market; it will enable clients with diabetes to pay lower premiums and arrange their cover more easily than is currently possible.
"It will really appeal to clients who manage their condition well yet who feel this is not reflected in current underwriting approaches, which can be fairly harsh for diabetics. More consumers will be protected as a result and is therefore very welcome news."
Insuring Change principal Ruth Gilbert: "The race to the bottom on price has put too much focus on the healthiest lives, making it an uncomfortable process for a significant proportion of the population. I hope these products will encourage more people to apply, without feeling like second-class citizens.
"The interesting thing now is to see how well the encouragements and help to work on improving health will work for this group of customers, compared to the generally healthier people Vitality has been attracting."
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