Burgesses Pride Without Prejudice
HEALTHCARE INSURANCE REPORT - 1ST JUNE 2003
Targeted primarily at gay people, this annually renewable plan, underwritten by a group of insurers, provides cover against unemployment and/or disability.
Plans are subject to an initial exclusion period of 60 days (up to £500 monthly benefit); 120 days (£500-£1,000) or 180 days (over £1,000). Maximum benefit is 75% of gross monthly income and benefits are paid for up to 12 months. The plan is available to anyone up to the age of 60 and cover runs to age 61.
Exclusions include back injuries except where radiological evidence of medical abnormality exists or there is a visible wound or contusion, drug/alcohol abuse, pre-existing conditions and non-medically necessary treatments or operations HIV and Aids are covered.
Comment: despite the headline grabbing nature of this plan, the risk to underwriters is small due to the short-term nature of the plan both so far as benefit term and annual renewability are concerned. The big concern for income payment protection insurance insurers is long term HIV/Aids claims, which this plan neatly side steps. Burgesses has again secured a high level of publicity for a plan that will be welcomed by many gay and bisexual people.
Lloyd’s loses its grip
Controversial broker Burgesses has announced that it is switching its new Pride Without Prejudice policy from Lloyd’s to a consortium of European insurers.
The move follows intervention by the business conduct review department at Lloyd’s which had asked Burgesses managing director Simon Burgess to provide details of the lead underwriter on the scheme.
Burgess claimed that the information was commercially sensitive and that it would be unethical to provide it. A spokesman for Lloyd’s denied that there was anything sinister in its request which it added was normal practice whenever asked to prove that cover claimed to have been placed through Lloyd’s has actually been placed. He added that Burgesses was not a Lloyd’s broker – usually a requirement of placing business direct with a Lloyd’s underwriter.
