As the ABI examines publishing claim statistics on short-term income protection (STIP) policies, British Friendly's Mark Myers says we need greater clarity on these plans.
It is important that the policy definitions, and in particular exclusions and future amendments to those conditions, are taken into account as well as the payment period, which is just one aspect of the policy.
Overall, publishing claims statistics can only be good - even if sometimes as an industry we need to take one step back before we can take 2 or 3 steps forward.
Those who suggest the work is already done and that we no longer need to publish stats are, however somewhat mistaken. Various sets of research show us that the message isn't getting through to consumers so the truth is that we've only just started.
The arguments raised against publishing claims statistics for short-term IP are indeed similar to those made against claims statistics for CI and IP, which over the years proved not to be insurmountable.
The industry should be aware however, especially from a communications point of view, that there is a risk that short-term claims stats will be lower than many of the numbers currently being published for long term cover, which needs to be carefully managed.
That said, it is much better to be on the front foot and in control of the messages - than reacting to negative publicity and market pressure. We have the opportunity to look forward and we should take it.
Mark Myers is CEO of British Friendly
