Adviser claims stats tool to dispel ‘myth’ insurers don’t pay out

Research firm The Finance & Technology Research Centre has launched a new claim statistics tool which aims to allow advisers to dispel consumers’ fears that protection insurers do not pay claims.

The online tool, which is free, features in-depth claims data for life cover, critical illness cover and income protection insurance from 10 of the market’s largest insurers.

F&TRC says giving advisers a means of proving the generally high payout rates across the industry could make consumers more likely to take out protection.

The participating insurers are Legal & General, Aviva, Friends Life, Aegon, Bright Grey, British Friendly, Exeter Family Friendly, LV=, Scottish Provident and Zurich. Ageas hasn’t provided its data yet, as it is a fairly new company without a lot of historical data, but has agreed to sign up.

As well as providing the overall percentage of claims paid during a specific period, the data also includes things like the number of claims paid, the average age of claimants, the youngest and oldest claimants, the top five common reasons for claiming, the average time taken to pay claims and a breakdown of why claims were denied.

The tool can be viewed on mobile devices as well as desktop and laptop computers.

F&TRC managing director Ian McKenna said the firm is looking at the feasibility of creating a consumer-facing version of the website.

McKenna says: “By publishing claims data on a regular basis the protection industry has come a long way in recent years. However, the message isn’t getting through to advisers or consumers.

“Research [by the Protection Review, earlier this year] shows that the perception is that less than 40 per cent of claims are paid, while the reality is 90 per cent. This free tool provides an unparalleled amount of claims data in one place, in a simple and consistent format, that will help advisers and consumers to understand the need for protection.”

LifeSearch life office relationship director Emma Thomson says: “Publishing claims statistics is vital to dispel the myth that protection policies don’t pay out.

“F&TRC’s new claims tool is impressive and will make it easier to understand claims by providing intermediaries and their customers with detailed and unrivalled information, including types of claims and ages of claimants, which all helps to show how valuable protection cover is.”

Master Adviser senior partner Roy McLoughlin says: “When you sit down with someone and they say ‘does this pay out?’, unless your answer is unequivocally ‘yes’ then they will turn off. With this now you can say here are the numbers to prove it. That is important.”

Advisers who wish to register can do so at www.adviserforumplus.com.

Click on the pictures below to see bigger versions of the tool in action:

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More to follow…