ABI: Success for ABI protection insurance non-disclosure initiative

Monday, 19 January 2009 12:00 AM

ABI guidance on insurance claims has helped halve long-term protection complaints to the Financial Ombudsman Service (FOS) since it was introduced in January 2008 according to new figures. The guidance was established to ensure that all ABI members were treating customers fairly in dealing with claims where they had made unintentional mistakes by failing to disclose medical and other information.

New figures from the FOS show that since the guidance was introduced the number of referrals they have received for disputed protection claims of this nature have declined dramatically throughout the year. The first quarter of 2008 saw 85 cases referred to the FOS, compared to 40 cases in the last quarter of the year.

As from today, the guidance has been formally upgraded to a Code of Conduct, in order to avoid any doubt that it was not mandatory for ABI members. The new code has also been extended to include group protection, extending the benefits to more customers. This sends a powerful signal that insurers put their customers' interests first.

Stephen Haddrill, the ABI's Director General, said:

"We're delighted that this initiative has worked so well and complaints have halved. The inclusion of group protection insurance in the Code extends its benefits to even more customers.

"As always, it remains essential for people to answer all questions carefully, to the best of their knowledge and belief, when they take out any protection insurance cover. However, the Code means that no one should ever be worse off as a result of a genuine mistake.

"The guidance, introduced last year, was always mandatory for ABI members. However, we've taken this opportunity to upgrade it to a Code to remove any doubt that compliance with it is compulsory for ABI members. We are sure that this will help increase consumer confidence in it."

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Notes for Editors

1. Enquiries to:
Jonathan French 020 7216 7392 (Mobile: 07958 330 480)
Malcolm Tarling 020 7216 7410 (Mobile: 07776 147 667)
Erfan Hussain 020 7216 7411 (Mobile: 07712 841 184)
Kelly Ostler-Coyle 020 7216 7415 (Mobile: 07968 364 302)

2. Figures for referrals to the Financial Ombudsman Service on claims for non-disclosure claims for 2008:
Q1: 85
Q2: 78
Q3: 48
Q4: 40 (Provisional figure)

3. The ABI guidance, Non-Disclosure and Treating Customers Fairly: Claims For Long-Term Protection Insurance Products from January 2009 has been upgraded to the Code of Conduct on Treating Customers Fairly and Non-Disclosure. A link to the publication is below.

4. Group protection insurance schemes (for example, employer group life and group income protection schemes) typically offer a limited amount of cover where scheme joiners are not asked for any details about their lifestyle or medical history. People joining the scheme will still need to provide their medical and other details if, for example, they have benefits exceeding this cover limit or they were absent from work due to illness when the scheme started. The Code now extends the fair treatment of non-disclosure made by individuals when they join group protection insurance schemes.

5. The ABI is the voice of the insurance and investment industry. Its members constitute over 90 per cent of the insurance market in the UK and 20 per cent across the EU. They control assets equivalent to a quarter of the UK's capital. They are the risk managers of the UK's economy and society. Through the ABI their voice is heard in Government and in public debate on insurance, savings and investment matters.

6. An ISDN line is available for broadcasts.

Copies of all ABI news releases, together with other information from the Association, can be seen on our website http://www.abi.org.uk

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