Cirencester friendly backs COVER's IP campaign

clock

Cirencester friendly has become the first insurer to give its backing to COVER's campaign to reform the assessment of claims for income protection (IP).

The campaign aims to end the practice of writing list-based occupational definitions, such as Activities of Daily Living and Working (ADL and ADW) for the product.

These have proven increasingly unpopular with advisers and clients recently and COVER, in partnership with the Protection Review, hopes to repair the damage to IP's reputation.

John Bridge, director of sales and marketing at Cirencester friendly, said the mutual has been an advocate for openness and transparency, especially with regards to claims.

"Transparency at claim is paramount to building trust amongst consumers and this includes the incapacity definitions used to determine whether or not a claimant is fit for work," he said.

"Cirencester friendly has led the way in the production and release of detailed claim statistics annually and sees the definition of incapacity as an extension of their commitment to transparency and fairness at claim.

"If the mechanism used to judge a person's eligibility for benefit is based on activities like bathing, dressing or climbing stairs, then claimants might reasonably question their relevance to what they do for a living.

"After all they are insuring themselves against the risk losing their income due to illness or incapacity rather than their functional status as a person," he added.

Bridge noted that all cover offered by the society was based on Own Occupation or Own/Own Suited incapacity definitions.

"As with many insurance products the proof of the product is in its primary function, which is the payment of valid claims.

"For many years Cirencester friendly has called for a standard format for the detailed release of claims statistics which enables a true comparison of product performance," he concluded.

More on Income Protection

Accident and illness absences impact 27% of adults

Accident and illness absences impact 27% of adults

Adults taking a month or more off work

Cameron Roberts
clock 21 November 2024 • 1 min read
Partner Insight: The everyday risks clients face

Partner Insight: The everyday risks clients face

New report sheds light on the common risks than can disrupt financial stability

MetLife
clock 20 November 2024 • 4 min read
Iress adds Scottish Widows' new IP to platform

Iress adds Scottish Widows' new IP to platform

Technology provider, Iress, has added Scottish Widows’ new income protection (IP) product to The Exchange - its quote and apply platform for intermediaries.

Jaskeet Briah
clock 06 November 2024 • 1 min read

Highlights

COVER Survey: Advisers damning of protection insurer service levels

COVER Survey: Advisers damning of protection insurer service levels

"It takes longer than ever to get underwriting terms"

John Brazier
clock 12 October 2023 • 5 min read
Online reviews trump price for young people selecting life and health cover

Online reviews trump price for young people selecting life and health cover

According to latest ReMark report

John Brazier
clock 11 October 2023 • 2 min read
ABI members with staff neurodiversity policy nearly doubles

ABI members with staff neurodiversity policy nearly doubles

Women within executive teams have grown to 32%

Jaskeet Briah
clock 10 October 2023 • 3 min read