"Each condition we include must benefit the customer and because our new grouped conditions are based on impact not the cause, our cover has broadened."
It has grouped over 20 conditions under four broad headings: degenerative neurological disorder, reduced heart function, surgery to the heart, aorta or pulmonary artery, and surgery via the skull.
These groups focus on the impact on daily life for customers, not the name of the illness. If the impact is the same, the customer will be covered – whatever the name of the condition.
AIG says the changes will put an end to the 'conditions race', where providers place emphasis on the number of conditions covered by policies, which it says demonstrates "comprehensive product coverage but also increased unwanted complexity".
Sue Helmont, marketing director at AIG Life, said: “These changes reduce condition numbers and represent a step change in CI market simplification, whilst enhancing the prospect of a successful claim.
“AIG Life’s philosophy is simple. Our aim is to deliver fairer customer outcomes. First and foremost, each condition we include must benefit the customer and because our new grouped conditions are based on impact not the cause, our cover has broadened. It also means advisers can be confident that cover keeps pace with new medical developments and won’t diminish over time.”
Karen Walker, chief executive of the MSA Trust, added: “Congratulations to AIG for leading the way and recognising a pressing need to simplify critical illness cover. A move away from an arbitrary list of conditions is a much fairer system for people and more insurers should be thinking as AIG has.
“This innovative approach will give many more people the confidence that if they have a rare and terminal progressive neurological condition, like multiple system atrophy, they will in future be able to claim on their critical illness insurance."
