TWO-THIRDS OF CONSUMERS SAY IF A PROVIDER IMPROVES ITS CRITICAL ILLNESS DEFINITIONS, THEY SHOULD BE AVAILABLE FOR EXISTING AND NEW CUSTOMERS

• Research shows that the majority of consumers expect critical illness cover providers to make definition improvements available for both existing and new customers
• Less than one in ten (8%) say critical illness definition improvements should be available for new customers only
• The findings – gathered as part of the research for CIExpert’s Critical Thinking Report 2024 – suggest that the industry could do more to align product design with consumer expectations

Two-thirds of consumers say that if a critical illness cover provider expands the list of critical illness conditions covered by its policy, they expect the wider criteria to be available to both existing and new customers. By contrast less than one in ten (8%) say they expect definition improvements to only be available to new customers, and a similar number (9%) say they expect them to only be available to existing customers.

The research findings, gathered as part of the CIExpert Critical Thinking 2024 Report launched earlier this year, surveyed the views and experiences of 5,000 consumers. Currently Guardian is the only protection company in the market to offer a cover upgrade promise within its critical illness cover policy. This promise states that if Guardian improves its critical illness definitions and it is possible to give them to a policyholder for free, it will check any claim made against both the definitions bought and the new definitions available and will pay out if the claim is valid under either. The promise also states that occasionally, Guardian may introduce changes that will come at a cost, and if that’s the case, it will offer existing customers the opportunity to pay to add these to their cover.

Rachael Welsh, Head of Marketing, Guardian, said: “CIExpert’s research findings give everyone in the industry a clear message: consumers expect to be treated fairly. When it comes to their expectations around critical illness cover, the majority expect the same definitions to be available to both existing and new customers and it’s the provider’s job to make that happen. We’re proud to be taking a lead in this area with our cover upgrade promise which Guardian brought to market in 2018. It’s already having an impact for our customers with our first claim paid under this promise last summer.”

Alan Lakey, Co-Founder and Director, CIExpert, said: “The Critical Thinking 2024 research and bespoke question set has helped us dig deeper into what consumers want and expect from their critical illness cover policy. There’s a big opportunity to grow the critical illness market but it relies on the industry meeting the needs and expectations of consumers today. The clear consumer response around cover upgrade was one example, among many others identified in the report, of how our industry has the potential to revolutionise to give consumers the benefits they expect from their cover. While I appreciate that enhancing product flexibility can be complicated, Guardian’s cover upgrade shows that it’s possible.”