"Focusing on the core three conditions that people claim on the most, in order to simplify the decision making process, will hopefully help engage consumers and indeed some distributors"
The provider says it is filling a gap in the market by targeting people who are traditionally under-insured, such as younger, single renters.
AIG says this market would consider simpler cover if it came at a lower cost than comprehensive critical illness cover. The policy is expected to be around 30% cheaper than a standard CI policy.
Key3 Critical Illness is available with or without additional life insurance and can be taken out by a single person, by a couple as joint life (first event), or on the life of another person/s.
AIG says that these three illnesses made up almost 80% of its claims in 2015 and were the conditions that consumers fear most.
Adam Winslow, chief executive of AIG Life, said: “This fills a gap in the market for customers who feel they can’t afford comprehensive critical illness insurance or who, like ‘generation rent’, do not own a home and are not prompted by a house purchase to look at how they will manage financially if they suffer from cancer, a heart attack or a stroke.”
Emma Thomson, Head of Customer Care at LifeSearch, commented: “It’s great to see AIG launching something new and it will be interesting to see how consumers respond. The Critical Illness market has become complex over recent years as more and more conditions have been added. Focusing on the core three conditions that people claim on the most, in order to simplify the decision making process, will hopefully help engage consumers and indeed some distributors who have been put off critical illness cover in the past.
“I think it will particularly help consumers who are buying non-advised, some of whom might be overwhelmed with complicated documentation covering 50+ illnesses and who stick with life cover only as a result.
“I applaud AIG for being innovative and hope it helps more consumers benefit from some critical illness protection, who after taking this initial step may be encouraged to buy more comprehensive cover in the future.”
