Aegon publishes IP stats for first time

Aegon UK has released its protection claims statistics for 2012 for life and critical illness (CI) and - for the first time - income protection (IP).

Roy Mcloughlin, spokesperson for the Income Protection Taskforce, said: "This brings us one step closer to our aim of all income protection providers disclosing their claims data.

"We understand their past reticence in providing these figures due to having such a low claims experience, and their point is well made and perfectly valid. However we believe transparency trumps all."

Last year, of 30 income protection claims received Aegon UK paid 25 (83%) with a yearly benefit of £367,000.

Five claims were declined; two as a result of the claim not meeting the definition and three due to non-disclosure.

Aegon paid 94.1% of life claims; of the 5.9% declined, 94% were due to non-disclosure and 6% were due to the definition not being met.

For critical illness, Aegon UK paid out 91% of claims received and of the 9% of declined, 35% were due to non-disclosure and 65% were declined due to the definition not being met.

Cancer was the most common life and critical illness claim at 50% and 60% respectively and the average claimant ages for each was 57 and 46.

Rod Mckie, a spokesperson for Aegon UK, said: "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 IP 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."

Mcloughlin called on other providers to publish IP claims stats, adding: "Provided financial advisers use the data responsibly - not as a like for like comparison - and insurance companies explain the reasons for declines, everyone wins."