SUMMARY: A recent review of Critical Illness Cover (CIC) by the FSA unearths some growing fears from consumers.
Critical Illness Cover to evolve after review
- Tips for Choosing a Life Insurance Company
- This article argues that you need to consider the merits of the life insurance company providing the policy, as well as the policy itself.
- Law Commission proposals to make insurance claims fairer.
- The Law Commission wants to change the law relating to non disclosure of facts on insurance application forms. This article explains what is happening.
- Law Commission proposals to make insurance claims fairer.
- The Law Commission wants to change the law relating to non disclosure of facts on insurance application forms. This article explains what is happening.
- Life Insurance Providing Little Protection from Terrorism
- We sincerely hope that you are never caught up in a terrorist attack. But if you were would your insurance stand up for you ?
Many sales are made on an advised basis following a full assessment of the individual customers financial needs. Overall, CIC sales have been in decline - falling by around 30% between 2002 and 2004. (pet insurance)
Firms selling critical illness cover (CIC) are making efforts to meet required standards but a new survey reveals they need to do more to show theyre treating customers fairly and helping them to have a better understanding of the product.
Visits to firms and mystery shopping exercises by the Financial Services Authority (FSA), have specifically looked at how compliant firms sales processes work when selling CIC. (medical insurance)
However, FSA Director of Retail Firms Sarah Wilson, said the survey had many ( home insurance quotes ) positive findings but also recognised some problems.
"CIC [as a product] has launched initiatives to deal with them and to assist in the fair treatment of customers, especially to make policy documents and applications forms clearer. It is ( life insurance quotations ) early days but these seem to be having a positive effect. (medical insurance)
"However, our work confirmed some of the compliance concerns we already identified last year in the context of work on the financial promotion of CIC and on general ( secured loans ) insurance documentation. As CIC can be complex, firms sometimes have trouble getting customers to understand what they are buying."
This lack of understanding makes it difficult for customers to make a ( medical insurance ) judgement about whether CIC the right product to meet their protection needs as oppossed to a payment or income protection policy. (cheap loan)
Click here for page 2