View more on these topics

Lucy Brown: Excellent claims statistics prove protection’s worth

With providers starting to release their claims statistics for last year, it is reassuring to see that they make for good reading. So far, life claims paid are coming out above 98 per cent and critical illness claims around 93 per cent. Aegon and Cirencester have also published income protection claims paid in excess of 94 per cent of cases.

So it would seem the question of whether insurers really do pay claims can be answered with a resounding yes.

In fact, Aviva paid a record £900m to customers holding individual protection last year. This breaks down to a staggering £2.5m paid out every day in either life, critical illness or income protection claims. That is 25,000 families helped by just Aviva at an incredibly stressful time.

Lucy Brown: Children’s cover is a shining light for protection

Legal & General quote some incredible numbers, too: £636m paid out in total across the year to 13,000 customers. It also states it has paid out £2.7bn in life, critical illness and terminal illness claims over the past five years.

Whether dealing with bereavement, an inability to work, or coming to terms with a serious illness, the removal of the worry about how bills are going to be paid will have made a huge difference to each of these customers.

They will also have had access to the support services that the majority of providers now offer. Be it a second opinion service, access to counselling or medical help lines, these additional support services are another massive benefit.

But what makes these numbers even more astounding is the fact that, despite this many claims being paid, so many people in the UK remain unprotected.

How many more families will face coming to terms with the loss of a loved one or a debilitating illness without the financial support and protection they are likely to need?

Advisers in dark over new protection CPD requirements

These figures demonstrate just how many people are benefiting from having cover, yet so often the protection conversation, particularly alongside mortgage advice, is still seen as an up-sell, not as a duty of care. And this is not just by consumers, but also by some advisers.

The amount paid out in claims should reassure us that we are doing the right thing when we talk about the importance of protection. It is our responsibility to ensure that as many of our clients as possible are protected, so they too have the peace of mind that they will have the means to remain in their home and pay their bills should their ability to earn be affected.

I am sure other providers’ claim statistics will make for similar reading and it would be good if more could be done to publicise these. It should reassure those who may be cynical about insurance that it really does pay, that there is a clear need, and that it is far from being an up-sell.

Lucy Brown is head of protection at London & Country


FCA interior 620x430

The £30m Brexit bill: How the FCA’s costs break down

The FCA has announced that it expects to incur £30m in costs over Brexit. The regulator’s business plan this morning shows that the bill, which is equivalent to just under 6 per cent of its total operating budget, will be funded in a variety of ways, including through reserves, reprioritisation of work and extra levies […]

Multiple Gains – the simple calculations advisers need to know

It’s widely known that chargeable event gains arising on life assurance policies, capital redemption policies and purchased life annuities are subject to income tax. Most advisers will also understand the chargeable gain calculation where a client only surrenders one investment bond in a tax year. However, what if clients need to surrender more than one […]


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. Ron Wheatcroft 17th May 2018 at 5:41 pm

    A very good article Lucy.

    Results published for both individual protection policies and for claims under employer- sponsored policies have been excellent. These numbers sit well with an industry mood which, far from being self-congratulory or complacent, is much more positive about the products and services which are offered to customers.

Leave a comment