UK insurers have made progress in supporting consumers with prior or existing mental health conditions after new standards launched in 2020 setting out ways for improvements in relation to accessibility, asking appropriate questions, communications and transparency. 

On transparency about 94% of firms said that, on a customer’s request, they explain what evidence is used to inform the underwriting approach, according to the survey by the Association of British Insurers (ABI). 

Around 83% also ensured their underwriting approach around mental health conditions is reviewed regularly, using up-to-date and relevant, statistically credible evidence as part of the transparency process. 

To improve communications and cover clarity about 81% said they have made mental health exclusions highly prominent in policy documents and in any communications with customers. 

Asked about accessibility 100% of survey respondents said that they provide consumers with two or more choices of how to communicate with them. 

Alternative methods of application are also allowed, the survey found. For example, individuals are permitted to complete their application alongside an intermediary/professional and also the option of an intermediary complete the application on behalf of customers. 

ABI says the survey findings show the industry’s efforts to apply the Mental Health and Insurance Standards since their launch in September 2020. 

The standards had an implementation deadline of December 31 2021 and last year the ABI surveyed 18 of its members to assess the progress. In April and May this year the ABI asked for more information from its travel insurance members. 

“Our industry wants to make it straightforward for customers with mental health conditions to access its products, and it’s good to see that our members have made progress,” ABI Director of Health and Protection Policy Yvonne Braun said. 

“The industry still has more work to do though, and we’re committed to working with firms and mental health experts to drive this forward.” 

The survey report says the standards provide guidance to health, protection, and travel insurers and are important given insurers rely on complete and accurate disclosure from customers. 

“The standards are not intended to change underwriting philosophies,” the survey report says. “An insurer may still not provide cover to consumers with pre-existing medical conditions. 

“However, we want to help consumers find insurers who will offer cover, as there are many who do cover individuals with pre-existing medical conditions.” 

Click here for the report.