AIG Life has announced a series of changes to its underwriting to make it quicker and easier for people who may have suffered with mental ill-health to buy protection insurance.
The moves apply to its insurance application, process and rules as well as to the letters it sends to customer that go further than the ABI Mental Health Standards being introduced this year.
AIG said the changes would mean nine in 10 customers declaring a common mental health condition will get an immediate decision. It has not been able to provide the current figure.
Under the changes AIG will view getting counselling and managing treatment as positive, so no automatic ratings or exclusions will applied for being on treatment, even if this is ongoing.
The insurer will instead focus on the symptoms and the impact of these.
AIG said it had also improved underwriting terms for customers who declare historic suicide attempts, suicidal thoughts or self-harm, and were treated differently depending on the situation. A new approach has also been introduced towards historic and resolved severe mental health issues.
Language changes
In order to create more customer-friendly language on the sensitive subject of mental health AIG has worked with psychologists at global telehealth provider Teladoc Health.
There are now two questions. The first asks about severe mental health which might have required a hospital stay, the second question is about general mental health conditions.
In situations where AIG cannot provide an instant decision as a result of the underwriting questions asked, it will ask the customer to explain their mental health condition in their own words.
The insurer’s underwriting letters have also been reviewed so they explain the underwriting decision a customer has received, what AIG has looked at, where applicants can get more information and who they can speak to find out more.
Helen Croft, head of underwriting strategy at AIG Life, said: “Mental health issues are the most common medical conditions people tell us about on insurance applications so our questions, language and the decisions we make should fairly match what people experience today.
“The changes we’ve made will make it easier for people with mental health conditions, currently or in the past, to get the insurance they need, and will hopefully improve consumer trust in insurers too.”
The insurer joins Royal London in making changes to support mental health applicants today while Aviva introduced similar changes in September.