Insurers consider new approach to HIV-risk customers

Proposals to update the way British insurers treat applications for life insurance from people who may be at risk of contracting HIV were announced today.

The Association of British Insurers wants companies to be able to assess the risk of an applicant contracting the virus without resorting to inappropriate or intrusive questioning.

It is consulting with a range of groups, including the insurance industry, gay and African rights organisations and medical bodies with a view to updating the guidance it offers insurers.

It has worked with HIV and Aids charity the Terrence Higgins Trust to set out proposed guidelines for insurers to follow when considering applications.

The guidelines include making decisions on offering cover on a case-by-case basis, not asking for excessive, speculative or irrelevant information and taking into account all relevant factors.

It also wants insurers to stay up to date with developments and statistics associated with HIV and to update their underwriting policy on the subject at least every three years.

Among the questions which male applicants could be asked is whether they are gay or bisexual.

Both sexes could be asked if they have been intravenous drug users, had surgery or been donated blood outside of the UK, or stayed in certain countries where infection rates are high for more than a set period of time.

Under the proposals the ABI is urging insurers to make sure any supplementary questions they ask are relevant. It suggests they should not ask applicants how many sexual partners they have had, whether they practise safe sex, or if they have had an HIV test.

Insurers will still be able to ask if someone has tested positive for HIV, or if they are currently awaiting the results of a test.

The guidelines apply to people applying for life insurance, critical illness cover, income protection, long-term care and the life insurance element of endowment policies.

Insurers should not ask for information relating to HIV if it is not covered by the policy.

Richard Walsh, head of health at the ABI, said: “This statement marks a significant step forward for both the industry and our customers.

“The industry wants to offer terms that fairly reflect risk. Customers do not want intrusive or inappropriate questions. Following this consultation, I am optimistic that we can achieve both of these goals.”