"Despite the fact that as an industry we’re paying almost all claims we receive, confidence in protection and its providers continues to be low. "
This is despite ABI figures show that 97.8% of claims made across group and individual protection in the UK were paid in 2017.
Respondents had a good grasp of the most common reasons claims aren’t paid, correctly identifying inaccurate information on applications and claiming for something that’s not included in the policy as the top two reasons.
However, many people indicated a lack of trust in providers. The third most common reason cited for a claim being declined was the belief that insurance companies find loopholes so they don’t have to pay them.
Simon Jacobs, head of underwriting and claims at Aegon, said: “Despite the fact that as an industry we’re paying almost all claims we receive, confidence in protection and its providers continues to be low. The fact that only 8% of people believe that we pay more than 90% of claims is concerning and shows that the message we do pay all valid protection claims is failing to reach people. Every year protection providers publish claims data to explain the number of claims they’ve paid out to customers.
“The reality is that contentious claims are few and far between. Just 2.2% of all claims aren’t paid, and in the vast majority of cases, there’s a very clear reason for this. Paying claims is at the heart of what we do. It’s central to our business and as an industry we need to showcase claims statistics and stamp out any lingering doubt that insurers don’t pay legitimate claims."
