| You can buy pretty much everything over the | | | | financial companies have to change the way they |
| Internet these days and this most certainly | | | | collection personal information. |
| applies to insurance. But the process of buying | | | | "It is more a recognition that we need to |
| something over the telephone or Internet means | | | | translate the new good practise that we have put |
| that you do not have the benefit of having a | | | | in place on paper to the online and telephone |
| person in front of you to explain something in | | | | application process. The methods of collecting the |
| depth if you do not understand. | | | | information are subtley different," the ABI said. |
| Another thing is that as a growing number of | | | | The move to improve standards for buying health |
| people begin to start buying products online, there | | | | insurance policies for things like critical illness on line |
| are new problems that occur - teething problems | | | | comes after the ABI this year launched various |
| shall we say that keep cropping up as more | | | | measures to make the steps to buying health |
| companies start offering services over the | | | | policies simpler for both consumers and financial |
| Internet for the first time. | | | | advisers. The organisation also updated guidance |
| With complex insurance policies like Critical Illness | | | | specifically for Critical Illness Insurance, offering |
| Insurance, a type of insurance where sometimes | | | | guidelines on how to bring more clarity to |
| people do not fully understand exactly what they | | | | application forms. The entire overhaul of personal |
| are buying, it is an area that could become a | | | | medical insurance guidelines meant improvements |
| problem. | | | | to the leaflets offering advice on Critical Illness |
| The Association of British Insurers thinks so | | | | Insurance, the removal of 'memory test' |
| anyway, which is why the organisation is | | | | questions like 'have you been to a doctor in the |
| improving the standards of the insurance | | | | last five years?'and clear warnings on application |
| application process via the telephone or the | | | | forms about the consequences if you do not |
| Internet for different types of health and | | | | reveal pre-existing medical conditions. The changes |
| protection policies, including those for critical | | | | came after speaking with cancer charities and |
| illnesses. | | | | other organisations. It was hoped that the |
| A spokesman for the ABI, says: "Because the | | | | guidance would reduce the likelihood that a claim |
| mechanics are slightly different when you are | | | | would be declined for non-disclosure of a |
| applying for a policy on the internet, you need to | | | | pre-existing medical condition. |
| look at that process slightly separately and that is | | | | The ABI's spokesperson said, "Having put in place |
| what we are doing at the moment. It is a piece | | | | what we believe to be higher standards of clarity |
| of work that is on-going and it will improve the | | | | on the application form, we clearly want to apply |
| application process for telephone and Internet | | | | those higher standards to all forms of |
| applications." | | | | underwriting application." |
| The ABI's spokesperson explain that it is not | | | | The work being carried out by the Association for |
| exactly that there have been problems with | | | | online applications is still work in progress. And it is |
| people buying medical policies like Critical Illness | | | | still unclear when the new standards will be |
| Insurance over the internet before, but the new | | | | released. But regardless of the time frame, it is |
| standards will simply just recognise that buying a | | | | certain that they will definitely be released soon. |
| financial product over the internet means that | | | | |