Aegon has published its income protection claims data for the first time, showing the provider paid 83 per cent of claims it received in 2012.
The provider had 30 claims for IP in total and paid 25 of them.
Two claims were declined because they did not meet the definition and three were declined due to non-disclosure. The total benefit paid to the 25 claimants was £367,000.
Aegon’s decision to disclose its IP claims statistics leaves just Bright Grey, Scottish Provident and Friends Life that do not publish IP figures. Last week, Zurich published its IP claims stats for the first time. However, Friends Life, Bright Grey and Scottish Provident say they will not disclose their IP claims figures until the industry comes up with consistent reporting standards.
The FSA says it is considering requiring insurers to publish claims data as part of efforts to boost transparency.
Aegon spokesman Rod Mckie says: “In the past the very low number of claims we received on this type of protection policy meant that one or two declines would distort the percentage paid so dramatically that we felt the claims data would not help in any meaningful comparison between providers.
“The claims received on our income protection book of business still remain very low. Only 30 claims were received in the whole of 2012. However, for the sake of complete transparency, we have decided to share this data.”
Income Protection Task Force member Roy Mcloughlin welcomed Aegon’s decision to publish it IP claims data.
He says: “As long as financial advisers use this type of data responsibly – not as a like for like comparison, and insurance companies play their part in explaining the reasons for declines, everyone wins. We now call on the other providers to also do the right thing.”
The provider also published its life and critical illness claims data today. In 2012, Aegon paid 94.1 per cent – 561 – of the 596 life claims it received, paying a total of £43.8m. This compares to a payout rate of 92 per cent and £62m for life claims in 2011. Of the 5.9 per cent of claims rejected in 2012, 94 per cent were due to misrepresentation and 6 per cent were due to the definition not being met’, with suicide included.
Aegon paid 91 per cent – 331 paid – of the 364 critical illness claims it received in 2012, worth £24.3m, compared to 93 per cent worth £28m in 2011. Of the 9 per cent of CI claims not paid in 2012, 35 per cent were due to misrepresentation and 65 per cent were due to the definition not being met.