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The New guidance is for ABI member companies and aims to improve clarity for consumers who take out protection insurance online or on the phone. The guidance builds on earlier work from the insurance body. The ABI states that telephone and on-line processes should be clearly explained to the applicant. An explanation of the process may occur at the beginning of the application (in the case of on-line applications) or at the beginning and during the application (in the case of telephone applications), as appropriate.New guidelines also state that supporting documentation, such as tele-underwriting guides and customer guides, can contribute significantly towards both applicant understanding and in showing that the insurer has provided information that clearly and simply explains the underwriting and application process.Interviewers and intermediaries should be encouraged to use customer guides as part of the sales interview to explain and reinforce how the process works and the applicant’s responsibility to answer the questions to the best of their knowledge and belief.If appropriate, the applicant should be asked whether they have understood any supporting documentation that may have been provided at the start of the telephone interview, with documentation made available, as a matter of course, on insurers' websites.Nick Starling, the ABI’s director of general insurance and health, said: "In recent years we have seen a growing trend of people taking out life, critical illness and income protection insurance over the phone and online, especially via intermediaries. "This latest ABI initiative will help ensure that the UK uses world-class online and telephone processes to help people disclose all the relevant information about their medical history. This will help ensure that people who take out cover in this way can rely on their policy to pay out when the need arises. "Protection insurance gives peace of mind to millions of individuals and families in the UK. We want to ensure that people have full confidence in, and understanding of, the products available. Our latest guidance marks another positive step towards this goal."ABI member companies have until 31 August next year to implement the changes recommended in the guidance.