In most countries, the standardization is normally conducted by insurance organizations for their members. In some places like Malaysia, the standardized conditions apply to all companies as a requirement of industry membership. Other organizations, such as the Association of British Insurers in the UK, cover such a high percentage of market participants that agreed definitions become the de facto industry benchmark. Similarly, Canada has introduced benchmark
definitions in 2008. They are not mandatory but are used by many insurers. Israel went one step further, issuing the minimum requirements directly from the Ministry of Finance.
Standardization helps achieve better consumer awareness and trust in the CI product. In combination with appropriate communication, definition standardization helps product promotion.
Product features and developments
Matrix of multiple event exclusions
You can’t re-instate this…
HIV / AIDS
If you’ve suffered this…
Alzheimer Blindness CABG Heart Attack Stroke HIV / AIDS Cancer
Traditional CI Insurance ceases once a benefit has been paid, leaving the policyholder with no further coverage against death or a second critical illness. With the improvements in medical treatment over the past few decades, survival rates have increased substantially, leading to a higher demand for continuous coverage after a critical illness. Accelerated CI products addressed this issue by first offering reinstatement of the Life cover. Reinstatement of the CI cover was introduced later on.
As certain CI events lead to a high probability of further similar CI events, reinstatement options normally exclude related conditions to such prior events.
The matrix and grouping designs provided the means to cope with exclusions. The matrix design provides a full array of all excluded condition combinations and has proved popular in Australia.
In Israel and East Asia, the grouping design has become more mainstream, by putting all highly correlated conditions into the same group. Should a CI event affect one of them, all remaining conditions within the group will automatically be excluded. This approach is less precise than the matrix design in reflecting the correlation among the different conditions. Additional exclusions are therefore sometimes needed.
Since the launch of the first reinstatement option a few years ago, the product design in South-East Asia has quickly progressed to offering coverage for multiple CI events. Grouping-based products are now offered by several insurance companies. Insurance policies can propose up to seven groups and four CI payments, with occasionally reinstated Cancer cover after longer waiting periods.