Insurance giant Legal & General did not have to pay 595 group income protection claims in 2015 due to intervention initiatives aimed at helping employees return to work.
The insurer said the number of claims averted through these “active intervention” schemes increased by 40 per cent from 2014, bringing the overall success rate on group income protection claims to 92 per cent.
That was well above the industry average of 84 per cent.
Overall, Legal & General paid out £266m in group protection claims in 2015, accounting for almost a fifth of the £1.4bn group payouts in the UK last year.
Of all the claims across its group products, 96 per cent were successful, the insurer stated, including 99.9 per cent of group life claims.
Martin Noone, workplace health and protection managing director of Legal & General, said the success of the active intervention schemes “emphasises the many ways we can support both employers and individuals during what can be an extremely difficult period.”
William Annison, an employee benefits consultant with HWWA Consulting, said active intervention is an increasing part of what group insurers offer.
“I’m a big fan,” he told FTAdviser. “Yes, they are using it to cut down claims, but I don’t think that is a negative thing.”
He cited one case in which an insurer helped a claimant with an injury change jobs by purchasing him a van.
He said if insurers are willing to spend money in these sorts of areas, they are less likely to outright refuse a claim.
While Mr Annison was broadly positive about initiatives of this sort, he said it is difficult to know exactly what insurance companies mean by “active intervention”, as it will differ from case to case.
He said most cases have to do with back-related injuries and mental health.
james.fernyhough@ft.com
