Holloway Friendly saw a modest increase in the amount of income protection claims paid during 2015.
The insurer paid 96.9 per cent of all income protection claims in 2015, an increase of almost 1 per cent over the 96 per cent paid out in 2014.
Mat Manser, the mutual’s sales and marketing director, said it had an “exceptionally high” pay-out rate on claims, with the figure improving year-on-year.
“This shows that we continue to support our members when they need us the most, be it in paid claims or by meeting their changing needs with continually evolving products and services.”
Of the claims not paid out, 33 per cent were because of the non-disclosure of existing medical conditions at the point that the policy was underwritten, meaning the policy would not have been accepted or a condition would have been excluded.
The number of non-disclosure cases identified by the firm has increased by 60 per cent compared to previous years, partly due to the insurer’s telephone underwriting system, implemented in 2010.
The recorded tele-underwriting system was designed to make it easier to both check and pick up an answer at the point of the claim that does not match what was disclosed at the point of application.
Mr Manser added: “While our level of pay-outs for genuine claimants is almost second to none, the rise in the number of non-disclosure cases brings home the important role that brokers pay in explaining to their clients how the claims process works and the importance of telling the whole truth at the point of application.”
katherine.denham@ft.com
