Holloway urges IFAs to review protection

Mat Manser, sales and marketing director, said regularly reviewing client policies can help advisers to ensure that the insurer was informed of any changes and prevent the rejection of claims.

Data from Holloway Friendly, which only sells its protection policies through IFAs, shows that of the 3.8 per cent of unpaid cases last year, 67 per cent were because claimants had failed to provide the correct medical or financial evidence.

A number of claims were unpaid involved clients that had not informed Holloway Friendly of a change of circumstances.

Mr Manser said: “We are concerned by the number of clients we were unable to pay out to due to changes since inception about which we had not been informed.

“This is a big opportunity for advisers to review their cases regularly and get in touch with their clients frequently to make sure that their policies are up to date and appropriate.

“This may well result in future sales opportunities for the adviser and will also mean we can continue to increase the percentage of claims we pay out.”

Holloway Friendly is a niche provider in the income protection market with £42.5m of assets under management.

Daniel Hopwood, financial consultant for Essex-based Bragagnini Associates, said: “Any good adviser would be reviewing his clients’ policies regularly. I review all of my clients’ circumstances every year or, at a maximum, every two years to identify any shortfalls. For me it is a requirement.”