LV= is updating its underwriting approach so people with chronic medical conditions including severe respiratory conditions, heart and lung diseases, and cancer can apply more easily.
As a result of the lowered risk now presented by Covid-19 and the firm’s approach to the pandemic, LV= said it was now able to offer life insurance for customers with these conditions.
The insurer said people with chronic conditions had proven more difficult to underwrite during the pandemic because they were considered more vulnerable to the effects of Covid-19.
LV= further revealed that it will offer cover at point of sale for controlled type 1 or type 2 diabetics, without the need for further medical evidence.
Elaborating on the move, LV= director of protection Debbie Kennedy told Health & Protection that in April 2020 as the impact of coronavirus and specifically the effects on those with underlying chronic conditions became apparent, LV=, alongside all other providers, adjusted its underwriting acceptance stance.
“This was done in partnership with our reassurers,” she said.
“In practice this meant that for chronic medical conditions such as chronic respiratory conditions; cancers, renal disease; heart disease and conditions which compromise the immune system we were restricting acceptance and postponing many of these applications.
“We have kept this stance under continuous review and today have confirmed that we will now once again broaden access to insurance and consider these applications as per our normal pre-Covid underwriting stance.”
Kennedy added: “With factors at play such as the success of the UK vaccine rollout, especially to those most at risk groups, and reducing numbers of positive Coronavirus cases, hospital admissions and deaths, we’ve arrived at the position where we can relax the Covid temporary philosophy measures and offer life protection to more customers.”
Fully re-opened
Looking ahead, Kennedy said the firm does not anticipate its stance altering or worsening in the future due to an improved situation in the UK with regards to the pandemic.
“We have fully re-opened access to insurance for life insurance customers. For very high sums (several million) we will individually consider these risks at the current time. We will continue to review the situation, as we have done so throughout the pandemic.”
Kennedy also noted the move would allow the provider to offer cover for an additional 2% of life insurance applicants and represented an important milestone as the industry continued to respond to the challenges presented by Covid-19.
“In addition, the change to our philosophy for diabetes will mean that we’re likely to accept over 50% of diabetic cases at point of sale, providing they have controlled blood sugars, no complications and no other adverse cardiovascular risk,” she added.