The Association of British Insurers’ have, following research with mental health charities including Mental Health UK and the Royal College of Psychiatrists, introduced new mental health standards.

These will have to be adopted by 31 December 2021 and it is hoped they will help clients whose mental ill health has been a barrier to their financial wellbeing, while also driving consistency and best practice in the field.

The standards mean potential customers with prior or existing mental health conditions will have clearer communications and a better understanding of the process and decisions insurers take when applying for cover.

What is being introduced?

Among the actions to help consumers are four key standards:

  • Improving accessibility by providing support to customers who may need help completing the application form and offering two or more choices of how a customer can communicate with their insurer
  • Supporting customers throughout their application by explaining the process and why questions are being asked
  • Standardising communication with customers by removing technical language, making any exclusions clear and signposting consumers to relevant support services
  • Increasing transparency around decision making by explaining to customers, upon request, what evidence was used to inform the insurer’s decision on cover and a commitment from insurers to regularly review their underwriting approach for mental health conditions

Alongside the standards, Mental Health UK has partnered with the ABI to provide a complementary insurance and mental health guide. This follows a Mental Health UK report earlier this year, which found that 86% of people affected by mental illness did not know where to go for independent advice when applying for insurance.

Independent Advice for Insurance

As experienced Independent Financial Advisors, we are always ensuring we follow the most up-to-date standards. You can learn more about us here. If you’d like to learn more about insurance advice, please get in touch. We aim to help you find the most suitable life insurance policy for your circumstances, giving you peace of mind.

As well as life insurance, Clifford Osborne also offer a range of advice on pensions, investments, equity release, mortgages and more.

We are based in Eastbourne, East Sussex, but meet with clients (both online and in person) across the South East including Hastings, Lewes, Brighton, Bexhill, Uckfield, Heathfield, Newhaven, Seaford, Tunbridge Wells and further afield.

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