The Association of British Insurers plans to develop industry-wide protection claims definitions after concerns were raised about a lack of consistency in the way providers report the figures.
Following months of industry pressure, Scottish Widows became the final UK provider to publish its income protection claims statistics last week.
Prior to this, Friends Life called on the industry to work with the ABI to create consistent data reporting.
Friends Life individual protection head of underwriting, claims and operations Chris Pollard said: “Disclosure and transparency are positive things for the industry, but we strongly believe that the figures themselves need to be meaningful so as not to lead to incorrect conclusions.”
The ABI says it is now working with its members to “refine” the definitions providers use to report pay-out rates in an attempt to ensure greater consistency across the industry.
A set of common definitions will be developed through an ABI-led initiative and will be used to report the 2013 data.
ABI director of life, savings and protection Stephen Gay says: “The new protection claims definitions to be developed will ensure consistency in how protection insurance claims figures are reported.”
Zurich head of retail propositions Peter Hamilton says: “We support any initiative that will help provide consistency and clarity in the presentation of claims statistics and having a standard set of definitions in place will facilitate this.
“At the same time we believe it is crucial that the ABI works with members to come up with the right set of definitions that make sense for providers and more importantly, their customers.”
The ABI has also published protection claims stats for 2012.
Some 98 per cent of life insurance claims were paid last year, up from 97 per cent in 2011, with an average payout of £49,000.
In critical illness, 90 per cent of claims were paid in 2012, compared with 89 per cent in 2011. The average payout was £70,000.
Some 92 per cent of income protection claims were paid in 2012, up from 88 per cent in 2011, with insurers paying out around £9,000 per claimant on average.