Royal London has dropped the need for a HIV blood test for non-medical limits (NMLs) from its underwriting process.
The test used to be an automatic evidence requirement when underwriting large sum-assured policies, but falling incidence rates and an increased probability of survival mean it has been removed for all customers regardless of cover and sum assured.
The removal of HIV tests is a result of a wider review of non-medical limits to make sure the evidence obtained is appropriate and necessary for underwriting assessments.
But the test will still be required where a customer discloses an intention to travel to certain regions or a specific health risk such as a history of a sexually transmitted disease or previous drug use.
In other changes, prostate specific antigen blood tests are no longer required for life cover, while stress electrocardiograms have been dropped for customers under the age of 50 for all covers.
The team at Royal London are really forward-thinking and innovative and they are trying to break from the status quo of traditional underwriting.Michael AldridgeDebbie Kennedy, head of group protection strategy at Royal London, said: “We are the first in the market to change our underwriting philosophy to remove the need for an HIV test from automatic evidence requirements for non-medical limits.
“HIV tests have been part of non-medical limits requirements for many years, but as incidence rates are reducing and survival rates increasing we felt this was no longer necessary.
"The removal of these investigations will help us offer cover quicker with less inconvenience to our customers, particularly in the high net worth space.
“The amendments to financial limits will make our personal menu income protection more accessible and removes unnecessary barriers for writing larger value income protection plans.”
Michael Aldridge, innovation director at London & Country Mortgages, said Royal London have been pushing the boundaries of underwriting.
“The team at Royal London are really forward-thinking and innovative and they are trying to break from the status quo of traditional underwriting,” he said. “Hats off to them.”
“When you see people like Lemonade in the US redefining what underwriting is, if new entrants come into the market then the incumbents will need to up their game.
“The protection world has to respond, and it is great that Royal London are at the cutting edge of that.”
simon.allin@ft.com
