Scottish Provident and Bright Grey have published their income protection claims data for the first time, showing 86 per cent and 83 per cent of claims paid respectively in 2012
Scottish Provident received 44 claims last year and paid out on 38, with a total claimant benefit of £452,352. Four claims were rejected because they did not meet the disability definition and two were refused for not fully disclosing information.
Bright Grey received 16 claims and paid 13 claimants £80,273 in total. Two claims were rejected for not meeting the disability definition and one for not fully disclosing information.
Bright Grey and Scottish Provident managing director Roger Edwards says: “We have a very small book of income protection customers. This means we have a limited amount of claims and our figures can easily be distorted by just one or two declines.
“However, while we remain concerned about the different ways in which IP data is collected across the industry and the fact that it is difficult to make like-for-like comparisons, we are committed to transparency within the industry. ”
Aegon and Zurich published their IP claims data for the first time last month, leaving Friends Life as the only major provider not to do so. In 2012, Aegon and Zurich paid out on 83 and 90 per cent of IP claims respectively.
Protection Review chief executive Kevin Carr says: “Consumer research suggests people think as little as 10 per cent is being paid when the truth is close to 90 per cent. The industry is frankly abysmal at promoting what it does well.”
Friends says it will not publish until standards are agreed.