ProtectionJul 24 2018

Quirky protection becoming the mainstream

  • Learn about why high-risk or impaired individuals are becoming the norm when trying to place insurance for them
  • Understand why lack of available insurance for non-standard risk concerns the FCA
  • Find out what providers are doing to expand their scope of cover people who previously found it difficult to get insurance
  • Learn about why high-risk or impaired individuals are becoming the norm when trying to place insurance for them
  • Understand why lack of available insurance for non-standard risk concerns the FCA
  • Find out what providers are doing to expand their scope of cover people who previously found it difficult to get insurance
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Approx.40min
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CPD
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CPD
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Quirky protection becoming the mainstream

Although the provider does not offer a “heavily impaired protocol”, says Mr Peters, it does have “a bespoke and inclusive underwriting process and we’ve happy for advisers with such clients to contact us or apply to see if their client could be accepted.

“We also offer our adviser network access to an underwriting tool for commonly disclosed conditions called ‘Underwriting Qi’ which will equip advisers with information on likely terms and medical requirements.” 

The regulator investigates 

Issues related to taking out insurance were recently highlighted by the Financial Conduct Authority (FCA) in its Call for Input (CfI) on Access To Insurance.

Although focused on the travel insurance sector in this instance, the FCA has already indicated that the findings of the CfI will also be used to inform their wider work on insurance pricing practices, as announced in the Business Plan for 2018/19.

The CfI came about following a ‘high level of interest’ in access to travel insurance for people with pre-existing medical conditions.

Feedback found availability to be very limited. There was also a lack of quality information about alternative options available to consumers after they’d received a high quote or been refused cover, causing some to assume they were uninsurable.

It’s not beyond the realms of imagination to consider the same might be said of the protection industry. But would this represent a fair summary? There seems a greater focus now on quality of cover and delivering clarity to consumers. 

Up close & personal

Getting cover for the quirky cohort necessitates that advisers really get to know their clients and manage their expectations, says David Mead, chief executive at Future Proof.

“In our experience, advice is founded upon an adviser ‘knowing their client’, which should include gathering information about the client’s medical history.

“On the back of this, the adviser can speak to underwriters directly, as well as utilising technology such as UnderwriteMe. The additional research allows the adviser to manage a client’s expectations, giving them a clear indication of what the ‘real premium’ is likely to look like. 

"This process allows the client to make a more informed decision and helps to avoid wasting time.”

Mr Mead adds that if clients with more high-risk needs use the direct route when looking for cover, it’s likely to end in disappointment. “Experience tells us that many insurers are driven by ensuring they appear in the top three on portals and price comparison sites.

"The premiums being quoted assume the client is in perfect health, only takes part in sensible hobbies and has an excellent family medical history.

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