HSBC Life UK is making critical illness (CI) cover available to Type 2 diabetic customers without the need for NHS records.
Open to customers applying for cover through its external distribution partners, the insurer said the move has been made possible through its enhanced digital underwriting process launched last July.
To be considered, diabetic customers applying for CI cover will need to be non-smokers with no diabetic complications. They also need to be managing their condition.
Premiums can be loaded up to a maximum of 150%.
Customers can secure cover by attending an independent nurse medical screening.
Screening are results assessed digitally within three days, being sent and received back automatically from provider Square Health.
The digital underwriting engine instantly provides an eligibility decision and then gives real time updates on the progress of the screening.
The insurer said CI cover for diabetics was “sporadic” across the UK protection industry, arguing many insurers were unable to consider diabetics despite data from Diabetes UK showing 4.3 million people are living with the condition.
However, earlier this month insurtech Bluezone launched life insurance cover for customers with Type 2 diabetes.
Discussing diabetic history
The insurer has developed a specially designed test with Square Health where nurses discuss with applicants their diabetic history, check their foot pulse, and take a blood test.
HSBC said the process aimed to give certainty to the customer of their disclosure.
It added it does this by providing the opportunity to discuss their diabetic history, “which can be very complex, with a medical professional, taking away the onus from the adviser“.
Jen Carhart, head of underwriting and claims at HSBC Life UK, said: “We are really proud to have worked with our partners, UnderwriteMe and Square Health to introduce this unique approach and open up such a vital protection product for a group of customers historically excluded by the industry from critical illness.
“To be able to realise this without further burden on the NHS and continue to build on digital innovation is a testament to how the world of underwriting is evolving to support customers and their needs.”