The tool, called CIC Compare, is a new module in in Engage, Defaqto’s end-to-end Financial Planning solution, which the firm says is “an easy to use tool that helps advisers compare new and historical critical illness policies in under five minutes on a whole of market basis.”
Using Defaqto’s historical data, scores have been allocated to the main critical illness definitions of all policies going back to 2009.
This means that CIC Compare can be used to contrast not just the current version of products but also earlier versions and closed plans.
Defaqto says it has developed a unique methodology for scoring conditions based on input from product pricing experts.
It focuses on the quality of the definition of the condition rather than just the statistical risk, which it says leads to better client outcomes.
The scores allocated to each definition are based on the likelihood of being able to claim in the event of contracting the condition.
Specifically how it relates to the insured population where serious illness is less prevalent than it is for older people.
Defaqto has scored 32 conditions (including the 21 conditions set out in the ABI guidelines) accounting for 98.9% of UK claims.
CIC Compare also enables the comparison of policy wording for 113 other conditions.
The adviser can quickly compare 145 conditions, making it easy to cater to their clients’ individual needs.
David Cartwright, head of insight for wealth and protection at Defaqto, said: “With so many factors to consider, CIC policies are complex and analysing them is time-consuming.
“CIC Compare has been developed to not only save advisers time but also help them to make better informed decisions, recommendations and manage compliance risk.
“As CIC policies evolve, comparing older policies with new products available becomes even more complicated.
“CIC Compare enables advisers to make better-informed decisions and provide transparent advice by comparing CIC policies easily side-by-side.
“Ultimately, it reduces complexity, ensuring that advisers' clients end up with the most comprehensive policies with the most fitting wording of CI definitions for their specific needs.”