ABI calls for more clarity on application forms

The Association of British Insurers (ABI) has published a consultation document for insurers on the design of protection insurance application forms to benefit consumers.

The ABI is aiming to raise awareness amongst customers of protection insurance such as critical illness cover, arguing that improving the clarity of application forms would help its cause.

Richard Walsh, the ABI?s head of health and protection insurance, said: "Protection insurance provides peace of mind and security to millions of people, and pays out claims worth millions of pounds every year. The insurance industry wants to improve knowledge and understanding of these products.

"In particular, we want to make sure that customers understand the terms and conditions of the product and the need to disclose any relevant pre-existing medical conditions. Where claims are turned down, it is often due to one of these factors.

"In our view, this is the most effective way of maximising the number of claims paid and helping customers make the best choices for them."

The ABI's consultation is the result of a substantive piece of work to improve the clarity of application forms for life and health protection products. It takes into account comments made by the Financial Ombudsman Service (FOS) and draws on industry best practice.