Poised for Prominence in Life (Partner Re)
Critical illness insurance is an important and appealing life protection cover, offering policyholders the comforting reassurance of an immediate lump sum payment on diagnosis of a defined critical illness or need to undergo a defined serious medical procedure. Mortgage related sales have been particularly well received.
Unfortunately, despite initial commercial success, complex and widening medical cover definitions and other issues (such as the introduction of “Total and Permanent Disability”) have led to misunderstandings in respect of cover and high claim declination rates in recent years. At the same time, life insurers have suffered from data availability issues, non-disclosure, anti-selection and fixed terms and conditions for a risk linked to the rapidly advancing medical and social sectors.
