HSBC Life UK has expanded its underwriting policy for mental illness disclosures made during a life and critical illness cover application.
The insurer said the change builds on the drive to remove stigma of mental illness and barriers to protection.
It said it recognises that customers who have had historic thoughts of suicide or self-harm should have the opportunity to receive standard terms at application stage.
The change has increased the opportunities for cover with standard terms at application stage with no back-office underwriting and no need for a GP report.
HSBC Life said initial tests of the new approach have seen an increase of 10% of applicants disclosing a mental illness receiving terms at application stage.
And 70% of applicants who disclosed mental health issues received standard terms at application stage.
The underwriting change, introduced today (1 February), coincides with Time to Talk Day which focuses on creating supportive communities by having conversations with family, friends, or colleagues about mental health.
Figures from the Time to Talk Day campaign, run by various mental health charities across the United Kingdom, show one in four adults in the UK will experience mental health issues in any given year.
HSBC Life UK head of product and chief distribution officer Mitchell Barker said: “We continue to build trust with our customers, and we are working hard to increase our focus on improving inclusivity and moving away from historic industry practices on underwriting mental illness.
“Preliminary results from the launch of the new rules have been very positive, demonstrating how the evolution of our underwriting approach is further enhancing inclusivity and enabling more people to receive important protection cover.”
