AIG, Guardian and Scottish Widows have been singled out for praise by advisers as examples of insurers who have taken a flexible approach to underwriting protection cover so they can act in the best interests of customers.
Advisers also applauded improvements in underwriting more widely in mental health and HIV, and highlighted the value of a good business development manager (BDM) in being able to support a case.
But they emphasised how important it was for intermediaries to be diligent and push for their clients to obtain protection and noted that insurers were tightening underwriting in some areas.
Going the extra mile internationally
Cura Financial Services co-managing director Alan Knowles (pictured) told Health & Protection about his positive experiences with the trio of insurers.
In one case eventually secured with AIG, Knowles highlighted where a client was suffering from clusters of blood vessels that had matted together and had not been surgically removed.
Doctors and consultants were not overly concerned by this, but insurers were turning down the customer for life cover.
However, when AIG looked at the case, while its underwriting manual would not allow cover, the insurer relaxed this to offer terms with a raised price in light of the increased risk.
In the case of Scottish Widows, Knowles provided the example of a client who used to live in Africa.
When abroad the client was diagnosed with an abnormal heartbeat with some minor mitral regurgitation – where some blood flows the wrong way in the heart because the valve does not close properly.
He was asymptomatic and otherwise fit and well and was told this was an incidental finding as his heartbeat was nothing to be concerned about.
However when moving to the UK a cardiologist agreed all looked fine, but required another echocardiogram to be certain.
Due to the backlogs of the pandemic this was likely to be a year away.
The pending echocardiogram meant all insurers would not offer life cover until after it was done but the client had no confirmed date as to when this would happen.
Knowles revealed that Scottish Widows agreed this did not seem fair and decided to help.
Cura obtained copies of the reports and scans comducted abroad which were sent to Scottish Widows and as these were good, it agreed to insure the client even with the outstanding echocardiogram.
Every mainstream insurer denied cover
Knowles also explained the case of a lady who had been struggling to secure life insurance after being diagnosed with Myotonic Dystrophy Type 1 – a form of muscular dystrophy which leads to muscle weakness and wasting – which he had detailed on LinkedIn.
Despite the mild form of this condition having normal life expectancy, Knowles added that every single mainstream insurer in the UK told the firm they would decline her cover.
A specialist underwriter could have taken the case with a resulting premium of hundreds per month, but Knowles added this did not feel right as the lady in this case was starting a family, holding down a full-time job and living a near to normal life.
However, Knowles praised Guardian for looking at the case realistically and obtaining full evidence from the GP.
This, in support with the information from the client enabled Guardian to offer her life insurance for her full mortgage of more than £400,000 for just over £50 per month.
“The woman in question now has vital protection for her partner and child, should the worst happen,” Knowles concluded.
Sector is awash with positive stories
Andrew Wilkinson, director at Moneysworth, told Health & Protection the protection sector is “awash” with positive stories of where an insurer has offered terms where others have previously declined.
But Wilkinson points out that this does not mean it is easy to secure such terms, adding advisers have to be diligent and thorough in their work.
“Sometimes clients leave comments on Feefo and some of those comments are quite revealing,” Wilkinson added.
“Over the last two or three years we have arranged many life insurance policies for clients with significant previous mental health disclosures who previously had applications declined by another insurer and in some cases several insurers.”
Positive improvements on HIV
According to Wilkinson one of the highlights the company has noticed in recent times has been the positive improvement on HIV as in the last few months the firm has started to get cases through at standard premium rates.
“In the current market one of the areas where underwriting is still tighter than pre-pandemic is for clients aged 60 plus. In fact, some insurers won’t offer life term assurance to anyone over the age of 79,” Wilkinson continued.
“We recently completed on an IP case for a 60-year-old. Due to his occupation and age every insurer said they were unable to offer cover, except one.
“We probably come across situations all the time where several insurers do not want to consider a case, but with hard work we can find one or two who take a different view. I think how a case is presented can also sometimes have a positive influence on the outcome.”
Difference advisers and BDMs make
Alan Lakey, director at Highclere Financial Services, told Health & Protection these examples showed how a responsible and knowledgeable adviser can achieve a favourable outcome for the client.
“A non-advised option would not have done this as it they use a conveyor belt approach,” Lakey said.
“The main thrust here is the agreeability of the underwriter to obtain actual medical evidence as opposed to taking a one-size-fits-all approach where the default is to decline.
“I recall a similar experience about three years back with AIG where my BDM worked tirelessly to persuade an underwriter that standard terms should be applied when other underwriters applied a loading.
“This shows how a good BDM can also make a difference.”
Naomi Greatorex, director at Heath Protection Solutions, revealed she works hard to ensure that the best terms are always offered- citing the example of a client she advised who had historic issues with his kidney.
“We always call the underwriters and talk through client’s medical history pre application,” she said.
“We expected a standard rates decision for life and critical illness, however when the decision came back he was rated by 100%.
“We then went back to the insurance market and submitted with two further insurers. One offered a 50% loading and the final insurer offered standard premium rates.
“This was a huge amount of work, but the client got the best terms possible.”