According to analysts Defaqto, the race among insurers to offer the biggest number of critical-illness conditions has been replaced by increasing competition to offer improved definitions.
There is an industry standard to provide clarity with industry definitions for illnesses frequently covered by policies. More insurers now include definitions that are more inclusive than the industry standard.
Ben Heffer of Defaqto says: “It is a good thing that insurers are introducing generous definitions but it is a double-edged sword because then you are introducing the variety. The conditions’ race has died a death, but it has now turned into a definition race.
Others say that the definition race is still going on too and that the spiral continues with an ever more complex product that few fully understand and one that strays further and further from its name "Critical Illness".
Ironically, as the cover gets wider and wider, fewer and fewer people are buying the product. The majority of insurers want to protect the status quo, but a minority sees a need to offer an alternative of simple cheap cover offering limited protection.