IFAs ignore TPD consultation

Only one intermediary responded to the Association of British Insurers' (ABI) Total and Permanent Disability (TPD) definitions consultation period, the ABI has said.

The association also revealed that it does not have a mandate to ban TPD in its current form.

With the majority of replies coming from providers, Nick Kirwan, assistant director for health and protection at the ABI, was disappointed with advisers' poor response to the four month long process.

He revealed that the consultation replies suggested eight options, which will be discussed by the respondents this week at a special ABI hosted session.

There was also near unanimous agreement that child cover should have standard wording, and education of advisers and customers should be improved.

Kirwan said: "We have some consensus building to do, but there's not a perfect solution.

"There is no silver bullet, if there was we would have got it by now. The reaction we've been having is that this is very difficult but don't stop, keep doing this piece of work, it's important."

However, Kirwan believes the extra definitions were worth the extra clarity they brought, although there is still a long road ahead.

"Can we move forward and make it better, that's the objective. This isn't an event, it's a journey," he added.

The issues to be discussed include:
• Adding the ABI's standard definitions to existing TPD definitions;
• Create two additional specific strands of definitions for back and mental health issues. These are the two costliest and most declined injuries currently cited;
• Include some standard of severity based cover;
• Leave as it is but target and improve education.