Tim Lewis, senior proposition innovation manager at Zurich, was instrumental in driving change in children’s CI and says the inclusion of children-specific illnesses was a significant step that paved the way for product managers to fundamentally change the way they thought about, and designed, children’s cover.
“In 2012, the first product was launched that did not specifically exclude conditions of a congenital (present at birth) or familial nature. Included on all policies today, this change was the catalyst to the improved coverage and innovations we’ve seen ever since,” he says.
Growth of medical conditions covered
While there have been a number of successful and welcome developments in the evolution of CI over the years, it is interesting to note that none of the advisers we spoke to mentioned the addition of new conditions as being on their list of preferences.
In fact, many believed the conditions 'arms race' of the 1990s proved detrimental to the sector, as providers sought to capitalise on the products’ popularity.
“The conditions arms race led to an ever-increasing conditions list, including some which are rarely, if ever, likely to be claimed upon. I’m glad to see that recent upgrades have focused on quality rather than quantity,” says Future Proof Insurance's Mead.
Tasneem Harnekar, head of propositions at AIG Life Limited, agrees, saying the insurer’s introduction of grouped conditions – to the individual protection market in 2020 and group market 2021 – highlighted the industry's move away from “a growing and complex conditions race that had plagued our industry for some time".
She adds: "AIG threw out the idea that every condition paid needed to be listed, and focused instead on the impact for the customer, regardless of their specific underlying condition, to provide a better customer outcome.
“It was an important development that helped financial advisers too, with quantity of conditions the focus over quality. Grouped conditions under simpler headings means advisers no longer needed to know nor recite the name of every condition covered to clients.”
Grouping some conditions under four headings that reflected either the surgery a person has been through, or the impact a medical situation has on their everyday lives, has given customers simpler, fairer and broader coverage, Harnekar says.
“It means their insurance keeps pace with tomorrow’s medical advances, doesn’t diminish in value over time and actually increases the prospect of successful claims,” she says.
These are objectives that led to the creation of CI in the first place.
Kevin Carr is chief executive of Protection Review and managing director of Carr Consulting & Communication; and Angela Barritt is a freelance journalist
