Confidence in the critical illness market is falling following the publication of declined claims and comments made by the Financial Ombudsman Service.
Regaining consumer confidence in the critical illness market is crucial for the future of the market, and although critical illness policies now cover 44 different conditions, it has done little to improve confidence.
Our view
The problem lies with lack of understanding of the policy and what it covers by both adviser and consumer. Critical Illness covers for certain, defined, serious illness conditions. For example, certain life threatening illnesses such as cancer. However, not all cancers are life threatening i.e. the cancer must be invasive. Regrettably, two clients have both had cause to claim under critical illness policies in the last 12 months, and both claims were settled in full. Our confidence and indeed, our clients confidence in this product is still very high.