F&TRC has launched a new claims statistics tool for advisers to encourage greater industry transparency and tackle client fears that claims do not pay out.
The real time tool gathers insurers' data in depth for the first time. Claims data for life cover, critical illness cover and income protection policies can be viewed from each organisation in tandem.
As well as including the overall percentage of claims paid during a specific period, the data also includes a range of other factors specific to each insurer including:
• The number of claims paid
• The average age of male and female claims
• The youngest and oldest age of claimants
• The top 5 most common reasons for claim
• A breakdown of why claims were declined
• The average time taken to pay claims
The insurers currently available on the site are Aviva, Friends Life, Bright Grey, Legal & General, Aegon, Exeter Friendly, LV=, Scottish Provident, British Friendly and Zurich.
Ian McKenna, managing director at F&TRC (pictured) said: "The protection industry pays out billions in claims each year but for some reason we treat it like a state secret.
"As a result consumers are cynical. Research has shown consumers believe less than 38% of critical illness claims are paid, but the reality is, in excess of 90% of claims are paid."
Roy McLoughlin, senior partner at Master Adviser agreed there was "huge cynicism" around protection policies from clients and non-specialist advisers, and the tool could help address some of those views.
He added the tool could help advisers drill down claims information and ask better targeted questions, about smoking habits for example, that could address non-disclosure issues.
McKenna said the ABI had been involved in discussions during the tool's development stage, and it could be used as an example of an industry solution when the trade body comes to developing its standard of claims statistics next year.
He also revealed the firm were looking at the possibility of rolling out a similar site for consumers.
