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