Is it true that insurers try not to pay out on claims?
That’s the perception many people have of insurers – that we’re quick to take money, but not so quick to pay it out.
Yet last year, Aviva paid out more than 97% of the protection claims it received, supporting over 25,000 customers and their families.
Lack of trust is a major reason people don’t take out financial protection
65% of UK adults don't have any form of protection(1). People don’t look at protecting their loved ones in the same way as they do protecting their house, car or even their pet.
And what’s one of the main reasons for not taking out financial protection? Not trusting insurers to pay out on a claim.
So why is that? We’ve been trying to find out.
Perception versus reality
While we were putting together our 2018 protection claims report, we spoke to several customers who claimed in 2017.
Before claiming, a number of them thought they would need to go through a rigorous process to get their money. And they were pleasantly surprised to find that wasn’t the case.
We’re proud of our claims record. Settling over 97% of all claims and paying out ￡900 million to our customers is what we’re here for. It’s our reason for being.
Contrary to popular opinion, we actively look for reasons to pay out – the complete opposite of public perception.
We see how these pay-outs make such a difference to customers which makes it even more frustrating that negative perceptions stop people from getting the cover they might so desperately need in future.
It’s time to change the way people think
Publishing our report is just one way we’ll do this.
Every year, there are a small number of cases where we don’t pay out, but, in our report, we clearly outline the reasons why.
We also tell some of our customers’ stories to help break open the myth that we make it as difficult as possible for people to get the money they’re due.
But we want to do more.
We need your help
We want to work with other insurers and the wider industry to change perceptions and help customers feel that we’re on their side.
So, I’d like to hear from you about your experiences and what we can do to change the hearts and minds of our customers about paying out protection claims.
Share your story or tale in the comments below. I’m ready and waiting to hear from you.
(1) Understanding the financial lives of UK adults, findings from the FCA's Financial Lives Survey 2017
Director Of Business Development at UnderwriteMe
6 年Good article Jackie, here at Aegon we’re in a similar position of being proud of our (published) claim statistics... and face the same challenge of ensure the end customer and potential customers believe in the the product - which, after all, is the claim.
Training and Research Manager
6 年The stats are there for all to see, they have been available for sometime.? Unfortunately our industry hasn't embraced the way consumers now acquire information and that's our fault not theirs.? We need to start telling stories about the claims experience rather than relying on consumers to pick up the baton.?
Marketing Strategy : Brand strategy : Marketing Planning : Campaign Management : Marketing Communications
6 年Great article, and good timing. Holloway Friendly announced their IP claims stats today. We paid 98% of claims in H1 and 100% of claims in April, May and June! That’s compared to the ABI average which is just under 88%! We do need to do more to raise awareness about the need for protection and that actually providers do pay claims. We actively seek to pay all claims. Our mission is that we’re here for our members when they need us the most. Would be very interested in joining forces in promoting this important topic.
Great article Jackie! This is ultimately what we all really do - helping customers when they most need us. More of the same across the industry can only help. Daren
Director, Mortgage & Protection Planner at FortyOne Money Limited
6 年Hi Jackie, A great article indeed. It's a shame we don't scream the payout rates from the rooftops. Twice (one just yesterday) I've had clients assume we pay just 10% of claims. Though most clients assume it's around 70%. That's simply ludicrous. Clients are pleasantly surprised when I show the ABI figure of 97% payout for 2016 for Life, Critical Illness and Income Protection . We do however need to remember that 3% were not paid and the negative press coverage of when a claim is declined does huge damage to client confidence. I think as an industry we forget how much damage this actually does. In our Protection Proposition we decided to tackle this 3% head-on by explaining the reason why we as an industry don't pay. When a client understands this, together with the concept of what they are trying to protect, they are far more receptive towards protection. I believe the key is greater education and understanding. We've done a great deal of work to help simplify Protection Planning which in turn has helped increase the take up amongst our clients. The more support we can get from product providers the better. Keep up the good work.