Royal London has introduced a new approach to cancer underwriting, broadening the access to cover and helping address the protection gap for those who have previously been diagnosed with cancer.
The change allows the mutual insurer to expand the instances it can offer terms for critical illness and income protection where in the past it may have been unable to do so.
Life cover outcomes have also been amended to reflect current evidence.
This will mean improved terms for customers who’ve previously had a range of different cancers, including breast, colorectal, and skin.
Royal London chief underwriter, Craig Paterson, said: “Improving cancer survival rates has led to a growing protection need for those who had previously had the disease that could also help address the protection gap.
“It’s important we continue to keep pace with medical advancements to offer fair and accurate decisions that benefit customers with a history of cancer.
“The changes we’ve made are part of our commitment to provide evidence-based outcomes and to broaden access to insurance by offering cover to as many customers as we can.”
The need for this change was outlined by the insurer as it pointed out that around one in every two people are likely to develop some form of cancer diagnosis in their lifetime.
Additionally, it stated that two thirds of adult critical illness claims related to cancer last year, thereby representing a disease that can affect everyone’s lives.
Royal London also pointed out that cancer is an “incredibly complex” area to underwrite, with over 200 different types, all with their own staging and grading.
However, it added that the updated guidance for cancer will be a development “welcomed by advisers and their clients”.
tom.dunstan@ft.com
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