HSBC LIFE (UK) makes changes to mental health underwriting
Applicants disclosing mental illness for life and critical illness cover are now more likely to receive cover and standard terms
In a bid to expand inclusivity, HSBC Life (UK) has introduced new digital rules for mental illness disclosures made in a life and critical illness cover application.
According to the company, taking time off work and seeking treatment should be seen as a positive for tackling the illness and not a barrier to a customer’s protection needs. HSBC Life (UK) also recognises that customers who have had historic thoughts of suicide or self-harm should have the opportunity to receive standard terms at application stage.
With the aim to build trust in the customer and remove the stigma of mental illness, this approach has increased opportunities for cover with standard terms at application stage with no back-office underwriting and no need for a GP report.
Initial tests of the new approach have seen an increase of 10% of applicants disclosing a mental illness receiving terms at application stage and 70% of applicants disclosing mental health issues receiving standard terms at application stage.
Mitchell Barker, Head of Product and Chief Distribution Officer at HSBC Life (UK) Ltd, said: “We continue to build trust with our customers, and we are working hard to increase our focus on improving inclusivity and moving away from historic industry practices on underwriting mental illness.
“Preliminary results from the launch of the new rules have been very positive, demonstrating how the evolution of our underwriting approach is further enhancing inclusivity and enabling more people to receive important protection cover.”
Launched on 1 February, it coincided with Time to Talk Day which focuses on creating supportive communities by having conversations with family, friends, or colleagues about mental health.
This comes afterUK-based insurer Aviva recently added a wellbeing package to its personal accident and business travel insurance offering.