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LV= pays 95% of protection claims in 2011

LV= says it paid out 95 per cent of protection claims in 2011.

The protection specialist says it paid out 91 per cent of income protection claims, 88 per cent of critical illness claims and 100 per cent of life assurance claims.

Fewer than 2 per cent of IP claims and 3 per cent of CI claims were rejected as a result of non-disclosure.

In total, LV= paid out £12m in IP claims, up 3 per cent on 2010, nearly £10m in CI claims, up 7 per cent on 2010, and more than £28m in life assurance claims.

The average age of it IP claimants was 45 and the average age of CI claimants was 47.

The average annual benefit for an IP claim is £16,568, paying out for an average of just over seven years, and the average CI claim was £70,098.

LV= head of protection Mark Jones says: “We have made a number of improvements in recent years, for instance to our tele-interviewing and intelligent underwriting, which has helped keep claims being declined for non-disclosure to a minimum.

“We are firmly committed to paying every valid claim and believe that releasing this data helps give people a better understanding of when claims are met.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. More marketing spin…

    Sorry Mark but the single biggest (perhaps only) factor in the improvement in % claims paid is the ABI/FOS matrix non-dislosure matrix that has softened claims standards since its introduction 4 or so years ago.

    Claiming credit for underwriting and tele interviewing initiatives or anything else is like the Brits claiming we won the war without help from the Yanks…

    How else do explain that every insurers claims paid ratios have improved during this period.

    These increased claims costs will eventually feed through to customer pricing, if they are not already, because the reinsurers who are paying them wont continue to do so…

  2. Agreed More Spin….

    The headline figure looks great 95% of claims. The real concern is only 88% of critical illness claims. Compared to the rest of the market that is a poor poor figure 2 out of 10 claims do not get paid. The figures are only improved by life claims and correct me if Im wrong but complete non disclosure aside if you die your going to get a pay out. Shocking that the headline compliments them on a 95% pay out.

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