Life Insurance - Doctors Reports Improved.

Insurance companies are not in the business of takingthem to do their calculations correctly.
on risks without first obtaining as much backgroundAn additional factor is that, in supplying patient's notes
knowledge as possible. This applies whether they areto insurers, GPs are going against the rules on patient
insuring your house, your car, your possessions or yourconfidentiality. They are permitted to respond to
life. There is however a difference in the operation ofinsurers requests for information as this will be done
such policies. Whilst there is nothing surprising in thosewith the full knowledge of the patient. The patient will
seeking competitive prices being prepared to changenot however expect the insurer to be supplied with
insurers as necessary for cover for the material itemsextraneous information which has no bearing on the
in their lives, a change of insurer for life cover is muchlife insurance question.
less likely.Now the good news is that the BMA (British Medical
This factor makes it more important for insuranceAssociation) and the ABI (Association of British
companies to obtain the most accurate informationInsurers) have concluded discussions which have
available relating to the medical history of theresulted in agreement being reached on a way
prospective customer. Information available howeverforward which should be satisfactory for all concerned.
makes it clear that the specific information needed isOn behalf of GPs, the BMA have agreed that reports
not always what has been provided.to insurance companies which are prepared for life
What insurance companies need (and in fact whatinsurance applications shall be of the high quality patient
they pay for) is specific information relating to theirspecific type required. In return the ABI have agreed
potential customer's past illness which will have, or isthat the charges for these reports shall increase by
likely to have a bearing on their life expectancy. This is6% per annum over the first five years of the
after all what life insurance is all about.agreement.
What has been supplied by GPs has not always metCompounded, this means that in five years the amount
this core requirement, and in some cases the insuranceper report which is paid by the insurance company will
company has simply been supplied with a copy of therise by around 34%. This will give hard pressed GPs
patient's records. To a GP these records should readthe incentive necessary to make time for the
like an open book; their training enables them to take apreparation of accurate medical reports. This point has
broad view and provide the most accurate summarybeen made by the BMA in advice to GPs regarding
available relating to the length of life which the patientthe new agreement. They have pointed out that
should be able to expect.improvement in the accuracy of life insurance
Whilst insurers may have experience of life insuranceinformation on which quotations are based is an
cases, they are not trained to be able to assess theimportant consideration, impinging as it does on the
effects of an illness on an individual, which is why theyquality of life for those patients.
pay doctors to provide such information. It must beIt is good to see an apparently satisfactory outcome
remembered that the future of their companyto a problem which has been a thorn in the flesh for
depends very much on them getting reliable facts,both the BMA and the ABI for some time.
which can be used to assess the risks and enable