Clean slate
Having only launched last year, Guardian has had the luxury of starting from scratch with its product design. This has resulted in simpler definitions that are easier for consumers to understand.
As an example, rather than insist on medical evidence to enable it to assess severity in the event of a heart attack, the company only requires a consultant neurologist to say the policyholder has suffered a heart attack for it to pay out. Although this is unlikely to affect the number of claims paid, Ms MacLean says it is fairer for the consumer.
“The doctor should decide whether the individual has had a heart attack, not the insurance company,” she says. “They do not need to wait for the medical evidence to go to the insurer before they know they will receive a payment.”
In other instances, Guardian’s definitions will mean more claims are paid. For instance, while most insurers require evidence of multiple sclerosis when a claim is assessed, it only requires a neurologist’s confirmation that there have been symptoms due to multiple sclerosis. This is a positive development for claimants as symptoms can come and go, especially in the early stages of the condition.
Alongside consumer-friendly definitions, Guardian’s policyholders can also benefit from cover upgrades, with some automatically added and others subject to underwriting. “We wanted to avoid the situation where cancelling an existing policy was the only option for policyholders who wanted the improvements,” Ms MacLean explains.
“I expect the industry will follow. It is becoming increasingly unacceptable to differentiate between new and existing customers.”
Whether through more positive publicity, awareness campaigns or product design improvements, the critical illness insurance industry must change consumers’ perceptions of its claims track record. By winning this trust, the product will reach its true potential, and individuals and families will have access to the protection they need and value.
