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Critical Illness Statement of Best Practice public consultation

The ABI has published proposed changes to the Critical Illness Statement of Best Practice for public consultation.

Having worked with members to review the 2011 Statement, and in accordance with section 1.24, the ABI plans to issue the revised Statement in late Q1 2014.

A 12 month implementation period from that date will usually follow. We would welcome your thoughts on the timescale.

Find out more about the proposed changes in the document:

Critical Illness Statement of Best Practice 2014 - public consultation (pdf 430kB)

The deadline for responses to the consultation is 31 January, 2014.

Please contact Karen Evans: Karen.Evans@abi.org.uk

Critical Illness and the Statement

Critical Illness cover is an insurance which pays out on meeting the policy definition, which will include a level of severity, of one of a list of specified critical illnesses.

The average pay-out on a Critical Illness policy was £59,000 in 2012, and the number of Critical Illness claims being paid continues to rise, with 92% of claims being paid in 2012 (up from 80% in 2005).

The Statement of Best Practice for Critical Illness aims to help protect consumers and to increase understanding and ease of comparison of critical illness policies by having a common format for the way Critical Illness cover is described to potential buyers at the point of purchase, making it clear that a level of severity is required in order for  claim to be paid.

These model wordings are a minimum standard that all ABI members offering Critical Illness cover have agreed to meet, but may exceed.

The model wordings need to be updated periodically to reflect changes in medical practice and to help increase clarity for consumers.

Last updated 01/07/2016