Target Newsletter - Issue 186 February 2023

Analyse Critical Illness Cover policies side by side

By Defaqto editorial team

Defaqto scores 35 conditions (including the 21 conditions set out in the ABI guidelines) accounting for 98.9% of UK claims. With CIC Compare you can quickly and confidently compare 145 conditions, making it easy to cater to their clients’ individual needs. The tool is continuously updated with new products and enhancements to existing products by Defaqto’s insight and research experts. This means CIC Compare can be used to contrast not just the current version of products but also earlier versions and closed plans. Additionally, CIC Compare can drive further efficiencies through its automatic inclusion of your own notes in the final report, which also includes detailed policy wording. CIC Compare is integrated into the end-to end financial planning tool, Defaqto Engage. CIC Compare supports you to provide transparent suitable advice by allowing you to easily compare CIC policies side-by-side. The solution ensures that your clients can select the most comprehensive policies, with the most fitting wording of CI definitions for their specific needs.

With several factors to consider, Critical Illness Cover (CIC) policies are complex and analysing them is time-consuming. Defaqto’s critical illness cover comparison tool, CIC Compare, provides an easy-to-use way for advisers to compare new and historic critical illness policies in under five minutes, on a whole of market basis, including white labels and direct products. With a focus on the definition of the condition rather than just the statistical risk, Defaqto partnered with critical illness pricing experts to develop a unique methodology for scoring conditions. This expertise was then applied to Defaqto’s detailed historical database to allocate scores to the main critical illness definitions of all policies dating back to 2009. The scores allocated to each definition are based on the likelihood of being able to claim in the event of contracting the condition. Specifically, how it relates to the insured population where serious illness is less prevalent than it is for the whole population.

Learn more about CIC Compare here.

12 TARGET NEWSLETTER