View more on these topics

Mental illness is biggest cause of claims at Friends

Mental illness was the biggest cause of claims under Friends Provident&#39s income protection plan last year.

Twenty-four per cent of claims were due to mental disorders, including chronic fatigue syndrome and stress.

Musculoskeletal disorders accounted for 21 per cent of claims, followed by conditions such as bronchitis, asthma and glandular fever at 16 per cent, heart disease and strokes at 13 per cent, accidents at 11 per cent, cancers at 8 per cent and nervous system diseases at 7 per cent.

Total claims last year reached nearly £25m for both individual and group policies. Friends has 140,000 income protection policyholders.

It says the results show that an illness which may not be considered critical from a medical standpoint can still be disabling and have a severe impact on a customer&#39s future earnings.

Head of protection marketing Peter Hamilton says: “In a perverse way, this does show how wise it is for people to consider the value of having income protection cover.

“Hopefully, these figures will serve to strengthen the importance of income protection in the financial planning process.”

PIFC Consulting head of technical services Mike Dowding says the results reinforce a trend that sees mental disorders topping the list of claims across the marketplace.

He says while employers place emphasis on looking after manual workers&#39 backs to prevent musculoskeletal problems, they are not taking enough action in jobs where stress is a problem.

Dowding says: “Here is another piece of evidence that mental disorders are top of the list. Stress is one of the major things that employers have still to address properly.”


Widows adds new fund links

Scottish Widows has added a range of fund links to its life and pension offering. The funds are Jupiter&#39s distribution, income and undervalued assets funds, New Star&#39s fixed interest, higher income, managed distribution and UK aggressive funds and Schroders&#39 UK alpha plus fund. Widows&#39 marketing director Peter Jordan says: “We constantly review the full range […]

Lender helps brokers on road to regulation

Kensington Mortgages is offering a service to help intermediaries prepare for mortgage and general insurance regulation. The lender, which specialises in non-conforming and impaired-credit cases, plans to issue a series of monthly guides from January to help brokers implement changes ahead of regulation. Mortgage brokers will be regulated from October 2004 and general insurance brokers […]

Axa: regional recruits plan to sign up further advisers

Axa is believed to be looking to recruit an IFA firm in each region around the UK to co-ordinate the recruitment of further advisers as part of its plans for creating multi-ties following depolarisation. The company intends to use the experience it has obtained through sister companies in non-polarised nations and from running a tied […]

0.3% deal threatens to widen squeeze

The deals that Standard Life has struck with the fund groups on its panel could lead to a crippling margin squeeze as rival platforms seek similar agreements with fund firms. Industry observers believe that by agreeing to run money at 30 basis points, as some groups are believed to have done, the panel members have […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm