The main changes recommended by the CIWP are clearer definition headlines, future-proofing the definitions and some changes to the Statement of Best Practice. It also asks whether people think the product name should be changed and how would they feel about the introduction of a framework for staged cancer payments.The recommended changes could have a huge impact on CII so it’s important you have your say. To introduce more descriptive critical illness definition headings would mean people would be able to see immediately what is and isn’t covered. For example, with the heading ‘Benign brain tumour’, it is proposed that this is changed to ‘Benign brain tumour – with permanent symptoms of brain damage’. Such changes should help cut down on claims for illnesses that don’t meet the definitions. When it comes to future-proofing, by thinking about medical advances now, policy definitions are less likely to need to be changed each time a breakthrough is made, meaning fewer versions of CII. The proposed changes will affect 11 of the current definitions. The recommendation to change the current Statement of Best Practice is to include additional illnesses within standard definitions. This would mean a standard definition would be available for Alzheimer’s disease with permanent symptoms, HIV contracted from a blood transfusion, a physical assault or at work and major head injury with persisting symptoms of brain damage. The question about whether the name of the product itself should change is a way to help clients understand what it covers. Some ideas for a new name are ‘Specified Critical Illness Cover’ or ‘Listed Critical Illness Cover’. The question of a staged cancer payment would be a major development so it is important you let the ABI know if you think it will work and which of its suggestions you think is best. The suggestions concern having two cancer definitions, one being the full definition similar to now and the other a restricted definition which would only pay out if the cancer was in one of the specified sites or spreading from its original site. The restricted cancer definition would be cheaper than the full definition, meaning it would be more likely to suit someone on a budget. You can get a copy of the full consultation paper at www.abi.org.uk. This is your chance to be part of making sure CII is available to meet your clients’ needs in the future. Help drive change, don’t let change drive you.
- Top trends
Intermediaries do not have to directly compete with lenders going direct to consumers through high street branches and can instead form strategic relationships.Speaking at a debate at Mortgage Strategys Mortgage Summit in Jerez, Larry Banda, head of mortgages at Nationwide, says nobody will benefit from the battle between the distribution channels.Landa told delegates: There is […]
Research showing intermediaries do 58% of their business through just three lenders has sparked concern in the industry. The findings from Charterhouse Research also show brokers are placing business through an average of just 11 lenders, which has raised questions about whether brokers are offering the best possible advice. Competitive products are a prerequisite for […]
Capital Link, the north Wales-based packager and bankruptcy remortgage specialist, has appointed Money Partners to its mortgage panel. Capital Link recently launched a service to the intermediary market providing a facility to negotiate with trustees and their solicitors on behalf of bankrupt clients facing the possession of their property. Capital Link then sources a suitable […]
Conti Financial Services Limited has launched a residential mortgage scheme for the Czech Republic. Alan Goss, regional manager for Eastern Europe at Conti, says: We have entered the Czech Republic because the political and economic situation there is sound, we understand the buying and lending processes for both investors and Czech nationals and the property […]
Jelf Employee Benefits has given its initial thoughts on the chancellor’s 2014 Autumn Statement. The company is seeking to isolate the sections of the speech (and the supporting document) that are relevant to the employee benefits debate. The first such area is pensions related.
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