Among the predictable but naive suggestions from the insurance industry for improving the sales of critical illness insurance is a good idea or two.
The predictable 'Educate consumers as to the value of taking out critical illness policies’ roughly translates as it is your fault for not buying a product as you ‘do not understand it’ - the lame excuse from salesmen everywhere why people do not buy what they sell when the real answer is that the product is wrong.
Then there is 'Increased communication with charities to raise awareness of the financial support that the product offers' – basically cheap advertising. And ‘Greater use of social media to complement publicity that television campaigns will generate’ – more cheap publicity. And ‘Production of a centralised protection information website hosted by the ABI’ – more cheap publicity.
Of the two good ideas - ‘Selling of an additional smaller sum assured critical illness policy alongside a life policy’; is a very good one as it uses the logic that as prices of life insurance have been falling , a slight increase in price for a limited amount of critical illness cover is logical. The only problem is that people claiming would find cover inadequate.
The best idea is 'Simplify the conditions that are covered and explain the likelihood of being able to claim.' What this actually is, is an admittance from some in the industry that a product designed by countless committee meetings looks like a cross between a camel and horse and a donkey; no one understands what it is for, what it does, or what half of the words mean.
Keeping the logic of what the product does, but totally redesigning it in a simpler form to cover the main risks would cut the price.
But expect most critical illness insurers to fight tooth and nail against this logical suggestion – and fall back on what they have done for years – agree to make tweaks to policies that no-one outside the tight knit circle of insurers either understands or cares about.