ABI aims for standardisation and clarity with TPD

The Association of British Insurers (ABI) believes a clear consensus has emerged surrounding its proposals to reclassify the Total and Permanent Disability (TPD) definitions.

It now appears that targeting education, clarity and standardization, and supporting materials will be the way forward.

Nick Kirwan, assistant director for health and protection at the ABI, is pleased with the outcome and feels it is a positive step.

He said: "There is no holy grail about what we will aim for in this process."

"We came out with a clear harmony that the next consultation will be on words rather than concept. Normally you wouldn't get a consensus but I was amazed at how people came together."

There was also broad agreement on issues surrounding child cover, cancer, parkinsons disease and terminal illness.

However many of the 12 original proposals, including the banning of TPD, were rejected or have been completely repackaged.

Having collated the responses from the four-month-long consultation period, the ABI hosted a discussion about those results with 60 members from the industry, including a representative from the Financial Ombudsman Service (FOS).

Alan Lakey, principal of Highclere Financial Services, who was the only IFA to respond to the consultation, was disappointed by fellow advisers, but it went very well.

He said: "I was impressed by the meeting of minds, and most people took the view that the ideas from the ABI weren't the way forward. We thought greater education throughout was primary."

The lack of interest from IFAs also particularly troubled Steve Casey, product manager at BUPA Individual Protection, who spoke with advisers for its consultation paper.

"However, it is a combination of advisers not being given the opportunity to respond and also the time to consider a consultation, which doesn't necessarily put food on the table," he said.