"While they all contribute something unique, they share a deep passion for protection and a natural ability to collaborate effectively."
- CIExpert
In February 2024, CIExpert launched its ‘Critical Thinking’ Report which found seven in ten consumers can’t recall advertising for Critical Illness Cover (CIC) on TV, social media, or in the news. Of those surveyed (5,000 consumers, analysed by generation), only 45% understood the basic premise of CIC – that they’d receive an agreed lump-sum payout when diagnosed with a critical illness.
17% of consumers wrongly believed a CIC payout had to be used to pay off a mortgage, rising to a quarter of young people (27% of millennials and 26% of Gen Z). Almost half (49%) simply ‘didn’t know’ how a CIC payout could support them financially.
READ MORE: Should we be surprised there’s a protection gap when consumers haven’t seen any advertising for it?
Notably, CIExpert found that two thirds of consumers said that if a provider expands its list of critical illness conditions, then this should benefit new & existing customers. Less than one in eight (8%) said they’d expect definition improvements to only be available to new customers, and a similar number (9%) said they’d expect them to only be available to existing customers.
As the only protection provider to offer cover upgrade promise within its CI plan, Rachael Welsh, Head of Marketing at Guardian Financial Services (Guardian), said “CIExpert’s research findings give everyone in the industry a clear message: consumers expect to be treated fairly. When it comes to their expectations around CI, the majority expect the same definition to be available to both existing & new customers – and it’s the provider’s job to make that happen.”
Alan Lakey, Director at CIExpert, added there’s a “big opportunity to grow the CI market but it relies on the industry meeting the needs and expectations of consumers today.” He believes this “clear consumer response around cover upgrade was one example, among many others identified in the report, of how our industry has the potential to revolutionise and give consumers the benefits they expect from their cover.”
READ MORE: Two thirds of consumers call for CI definition improvements to reward new & existing customers
Last month, CIExpert launched its single-life campaign after finding 43% of consumers assume joint policies are best, while 33% are unsure; “We were surprised to discover this and believe it’s time for change.” The campaign calls for single-life cover to become the default recommendation, and for any joint-life recommendations to be evidenced on the overall value and quality of cover, not just price.
READ MORE: Why it’s worth clients paying more to avoid joint-life policies
Since publication, ‘Critical Thinking’ has given the team “valuable insights into how consumers perceive protection plans – how they use them, what they’d like to use them for, and how they want to see them evolve. These findings highlight the critical role of education in promoting high-quality protection advice.”
Therefore, CIExpert has launched the next phase of the initiative: Critical Thinking Ambassadors Programme. “These industry leaders – representing leading Life, CI & Income Protection (IP) providers – will drive awareness, education, and innovation across the industry,” it said.
Over the next seven weeks, CIExpert will reveal ambassadors, each bringing a wealth of industry knowledge, experience, and a strong reputation in the market; “While they all contribute something unique, they share a deep passion for protection and a natural ability to collaborate effectively.”
