After making changes to underwriting guidelines for self-employed customers earlier this year Partners Life received feedback that they used to further improve processes. Adviser feedback focused on the 4 week waiting period for Income Cover, Mortgage Repayment Cover, and Household Expenses Cover.
“One of the changes we made was to restrict the waiting period options to only 4 weeks for self-employed clients across these products. This change was designed to facilitate early engagement with claims case managers when a self-employed customer had become disabled. We determined that longer waiting periods would make early intervention and return to work management much less effective.
While we still believe this to be the case, we also understand that forcing a shorter waiting period onto customers can impact on affordability and can also cause issues for advisers when trying to combine business cover such as Loss of Revenue with personal income protection products. In addition, we appreciate that shorter waiting periods do expose us to more claims because we get all the shorter ones and we pay more for the longer-term claims (because we start paying sooner).
We know from your feedback that this restriction of waiting period choice has been a significant issue”.
Based on the feedback received, Partners Life are implementing the previous waiting period effective July 23, 2020.
“In response to your concerns, and because we believe our other changes will provide enough of the protection we are seeking, we are reversing the restriction on waiting period options for self-employed clients with effect from Thursday 23 July 2020.”
In other news:
The Insurance (Prompt Settlement of Claims for Uninhabitable Residential Property) Bill was read a first time in Parliament and referred to the Governance and Administration Committee.
Department of Internal Affairs: Department of Internal Affairs released a summary of its AML/CFT findings in relation to the legal sector.