Scottish Widows has updated its protect plan to comply with the Association of British Insurers minimum wordings requirement.
The main change is the switch to 100 per cent payment for early-stage prostate cancer if treated by prostatectomy (surgical removal of the prostate).
For older males, this provides an improvement on the previous claim wording and, as a consequence, there is a resultant fall in the value of the early-stage prostate cancer condition.
Scottish Widows also announced changes to its heart attack coverage, amending its exclusion for “myocardial injury” to make clear this is only where there is not a heart attack.
The insurer also changed its dementia coverage, with a confirmation that mild cognitive impairment is excluded.
These changes are those “mandated” by the ABI in its latest review of the minimum standard wordings, CIExpert director, Alan Lakey, explained.
He added these changes were, or will be, “adopted by the majority of insurers” with many opting to go “beyond the minimum standard”.
“Scottish Widows Protect has maintained its position as offering one of the leading plans in the budget arena and demonstrates a sound 93 per cent critical illness claims paid figure for 2022.”
However, Scottish Widows Protect did not adopt the ABI exclusion in respect of stage 1 thyroid cancer.
Lakey explained this choice was in a similar vein to most other insurers.
He explained: “A few years ago, there were concerns amongst reinsurers that it could give rise to unwarranted claims occurring, as in South Korea.”
However, he added there now appears to be “little appetite” to adopt this exclusion and the “resulting complexity” of trying to explain the subtle reduction in coverage to both advisers and consumers.
Additionally, Scottish Widows added “a more precise definition of the claim wording” for gastrointestinal stromal tumours and neuroendocrine tumours.
tom.dunstan@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
