Ageas confirmed it is reviewing its income protection (IP) products to own occupation underwriting
Ageas has listened to the concerns relating to task based definitions. Andy Milburn, head of marketing at Ageas, confirmed that even though the insurer offers both any and suited occupation, a move to own occupation for the insurer is on the cards.
As with LV= and other insurers Mr Milburn was concerned that by dropping task based policies from their products could lead to concerns about those that would be excluded.
Mr Milburn told COVER: “One of the options is to not take IP seriously, to have a product basically in the market as a hygiene factor, which we obviously don’t want to do.
“Another option is to look at our values to evolve the product, which would be down the own occupation route, which more and more advisers are asking providers to do.”
Milburn continued: “We are looking at what we are doing with activities of daily work (ADW) in a different way,” Alongside the overhaul Ageas already has an internal group assessing the use of functional assessment tests.said Milburn.
“If we all head down the own occupation route, and there are 11 providers who could do that, then what do we do with those that we would exclude from that cover, who cannot get own occupation?
“The major area that the industry would miss ADWs is houseperson’s cover, because how do you assess them as unable to do their role if you didn’t have some sort of functional assessment?”
Mr Milnurn finished by warning: “We need to think of the consequences as we go down any particular path,”