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FOS ABI Code of Practice on longterm protection insurance has had a beneficial effect for consumers

A major agreement between insurers has resulted in a significant drop in complaints on critical illness insurance, according to the latest FOS (Financial Ombudsman Service) Annual Report. The ABI Code of Practice on long-term protection forms part of the ABI's Consumer Strategy, which puts consumer interests at the heart of what we do. The Code guarantees that all ABI members treat customers fairly when dealing with claims where they had unintentionally failed to tell their insurer a relevant piece of information when they applied for their policy.

As well as the FOS reporting fewer complaints on critical illness insurance, of the complaints that do go to the FOS, they are now finding that the insurer has acted fairly in more cases.

Nick Starling, the ABI's Director of General Insurance and Health, said:

"This drop in complaints is a direct result of the ABI's Code of Practice. The Code looks at the way claims are dealt with where people failed to tell their insurer about a relevant piece of information when they applied for their policy.

"This is good news for consumers. It means people can be confident that when they buy a critical illness policy, they know it will pay out if it is needed."


Last updated 01/07/2016