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Protection providers called on to release claims data

All protection providers should reveal their claims statistics to improve understanding and decrease instances of non-disclosure by clients, according to Abbey for Intermediaries.

Head of life and health propositions (protection) Sue Wilkinson made her call as ScotProv released its critical-illness claims data for January to June 2005. The data shows that the majority of unsuccessful claims were as a result of non-disclosure.

Wilkinson says advisers and clients need to understand the consequences of non-disclosure and the ABI should be taking a more pro-active role with consumers and the press.

Of 75 ScotProv claims that were not paid, 66 were declined because the claimant had not disclosed material information when taking out the plan. The rest were turned down because the illness suffered did not meet any of the CI definitions. The average CI claim paid was 74,529. Cancer remains the most common reason for claiming, with more than 30.5m paid out for 383 claims.

Wilkinson says: “By highlighting reasons why some claims are declined, we are also trying to emphasise the need to be as accurate and detailed as possible with the information disclosed on application forms. If some people are not sharing their data with the rest of the industry, I would like to know why.”

Life Policies Direct managing director Jason King says: “Claims stats are definitely useful to have but you have to make sure you are comparing apples with apples.”

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