Rapid expansion of CII definitions however has lead some to associate this cover with playing the lottery or even a retirement plan (see "Trauma Insurance - Want to play the lottery"). This problem persists. One proposal is "life insurance solutions should be linked to impacts, not causation, and should provide benefits based on the claimant's outcome of an illness rather than just on the condition meeting a particular definition" - Gavin Teichner, general manager of individual life at Australian life insurer TAL
Diving deeper into medical or legal definitions to define further conditions or impacts is not the future. The world has changed. Peoples' trust in professionals, including doctors and lawyers, is at an all time low - so basing a insurance product around these professionals' decisions is a tough ask. Further, 'impact' is path dependent . For instance, there is a big difference between someone who has been diagnosed with cancer and another person, diagnosed with the same form of cancer but has also recently lost their job or even husband / wife. Can you really put your trust in an insurer to fairly make a call on how impactful your condition is? So what is a way to offer simple cover but still allow for impact?
Enter donation-based-crowdfunding. Donation-based-crowdfunding is being used by many to help fund costs of critical illnesses, severe injuries and even death. Because donations are made post event, donors can allow for 'impact' is a straight forward way. Unfortunately, most campaigns don't go viral, so you are dependent on your crowd - this often means only a small amount is raised. A crowdfunding insurance solution could remedy the shallow pockets problem by magnifying the amount raised - funded by pre-event regular premiums.
PeerCover is promoting such a solution (see how you can make it happen) but also offers a non-insurance approach based purely on gifting and transparency which anyone worldwide and take-up today. See here for more information.