07/08/03

To help insurance companies raise consumer awareness and understanding of income protection insurance, the ABI (Association of British Insurers) has today published a new model consumer guide and revisions to its current Statement of Best Practice.

The model guide is available to both consumers and members on the ABI website (www.abi.org.uk).  Publication follows a wide ranging consultation with ABI members and other groups. The wording from the Guide, which now complements the new revised Statement of Best Practice*, will be used by insurance companies when producing their own consumer information.

The guide places income protection in the context of the different types of health insurance products on offer, including mortgage payment protection insurance, critical illness, private medical and long-term care insurance. It explains what income protection is, what it covers and what other factors customers need to consider, for example in deciding what price to pay.

Richard Walsh, the ABI’s Head of Health Insurance, said:

“We want to help our members communicate clearly and consistently with their customers about the types of income protection products that are available and the choices that are open to them should they decide to buy one.

Many people under-estimate the severe financial impact of a prolonged period off work, yet 2.4 million people received incapacity benefits and were off work for more than six months in 2002. It is important that customers not only understand the risks but are aware of the solutions.”

Provided by the ABI