The Financial Conduct Authority may force all insurers to publish claims data under plans to boost regulatory transparency.
In its FCA transparency discussion paper, published this week, the FSA suggests insurers should be required to publish standard information on the level of claims they have paid out.
The FSA says publishing claims data would help advisers to compare products and would help consumers to focus on a product’s value rather than price.
Suggestions for what data insurers would have to publish include claims per customer, the successful claims percentage following initial contact, premiums versus payout ratios and statistics on how many claims are reduced or refused due to non-disclosure.
In the protection market, many insurers publish claims data for life cover and critical illness products, but claims disclosure lags behind in the income protection market.
Aegon, Bright Grey, Scottish Provident, and Friends Life do not publish claims data for IP, though some providers are reviewing this. Zurich published its IP claims data for the first time yesterday.
Master Adviser senior partner and Income Protection Task Force executive committee member Roy McLoughlin says: “It is imperative all claims statistics are in the public domain. Whether products pay out or not is the 64 million dollar question for both consumers and advisers.”