"We regularly talk to advisers who are concerned about the complexities of Critical Illness policy wordings and are worried about not recommending the right products."
The system will allow advisers to compare CI policies based upon the quality of cover provided.
Ian McKenna, Director of F&TRC, said: “We regularly talk to advisers who are concerned about the complexities of Critical Illness policy wordings and are worried about not recommending the right products. By making the views of independent medical experts an integral part of our research software we can make it easier for advisers and networks to quickly recognise and compare the differences between potentially complex policies. It will also enable advisers to be confident they are offering the most suitable option based on the client’s requirements, including a qualitative assessment rather than just based on price.
“As well as helping advisers in their day to day recommendations with clients, the data can also be a very powerful tool to assist networks and larger distribution firms with panel reviews. We are not aware of any equivalent study that has been made available to the adviser market were wordings have been assessed based on the views of a medical panel.
“Our initial assessment includes the conditions that account for over 99% of Adult Critical Illness claims. We will shortly extend the analysis to include Children’s Critical Illness and a range of other options. We are at the beginning of the journey the system will continue to be refined based upon market feedback, in particular from adviser firms."
Associate Director at Cavendish Ware, Roy McLoughlin, added: “With a range of different products and definitions across the market, critical illness cover has become a complex subject for advisers. Having access to independent research tools is therefore essential for both advisers and paraplanners to help them quickly navigate through all the policy wordings and product choices with confidence. The inclusion of expert medical opinions, which underlines this new analysis from F&TRC, is also very welcome.”
Michael Aldridge, Innovation Director at L&C Mortgages, commented: “Critical illness policy wordings have become increasingly complex in recent years as insurers have enhanced their cover. Having guidance from a medical professional on which providers wordings are most favourable from a medical perspective will be a great additional benefit to advisers and give them further confidence in making the right recommendation.”
