Holloway Friendly has launched premium discounts for its short-term income protection and its purely
income protection plans.
The specialist income protection provider launched the discounted premia as part of its plans to improve its member proposition.
According to Stuart Tragheim, chief executive of Holloway Friendly, the change aims to provide "excellent value for money, and not penalise members financially for medical conditions which they would not be able to claim for".
Previously, a full premium was charged even if an exclusion was applied for a specific medical condition.
However, the new approach will mean members’ premiums fully reflect the cover they have.
The discount can be applied for permanent exclusions for mental illness and/or spinal conditions.
If one exclusion is applied then there is a discount of 10 per cent and if there are two exclusions there is a discount of 20 per cent.
The premium reduction will apply in all cases unless there are other significant underwriting factors to consider.
This discount is offered throughout the life of the plan and will not be reviewed.
Earlier this year, the friendly unveiled a service to provide an immediate underwriting decision.
The service can be used by advisers to provide an instant decision at the point of sale for a range of applicants.
Last year, Holloway Friendly told FTAdviser it was embarking on a significant period of growth in terms of products, process and customer service.
At the time, Phil Hull, proposition and portal manager for Holloway, said the business was looking at developing its existing full and short-term income protection products and underwriting processes over the year.
Alan Lakey, founder of CI Expert, said: "Holloway's move is very sensible as it highlights to clients that while they cannot obtain standard terms they are not being penalised financially as well.
"Some insurers do this for critical illness cover where certain excluded conditions result in a discounted premium and it is both fair and sensible."