Back then there were stories on the TV and in the consumer press every month, if not every week, about a declined CI claim – and the industry’s reputation took a heck of a beating. It is easy to remember the bad stories of course but in truth most media coverage of protection insurance is very balanced and generally positive.
Today, figures for life cover and income protection products are also regularly published. Alongside the 91.8 per cent in critical illness claims, 91.1 per cent of income protection and 98.4 per cent of life claims are paid on average.
And those declined claim stories? Well, they haven’t quite disappeared, but there’s a lot less of them.
3. Claims statistics in one place.
Most insurers publish their stats on a yearly basis, usually via a press release to the trade publications. But insurers publish their numbers in different ways and at different times, so it can be hard to keep track.
As each insurer issues its claims statistics for numerous products independently it can be time consuming for advisers to look at the data collectively for use with clients, therefore, many simply won’t include it in their conversations.
However, specialist firms such as F&TRC and CI Expert allow advisers to see all the data and compare the latest numbers across the industry.
F&TRC managing director Ian McKenna says: “The protection industry is very transparent when it comes to claims statistics. But that’s only useful if people can use the information simply and efficiently.
“To help advisers get the most out of valuable protection claims data we provide a regularly updated one-stop-shop of information in a simple and consistent format, that will help clients understand the need for protection.”
The tool has recently been updated with new insurer claims figures, and is free for advisers to access at www.advisersoftware.com.
4. It’s not just about the money.
Some of the most valued services when someone claims on a protection policy, but ones that can be very much undervalued in the sales process are the ancillary benefits that providers offer.
Whether a family member needs bereavement counselling, or someone has had an accident and needs rehabilitation support, these services can be provided by the insurer or partners working alongside them. It also often means that people can access vital support services much faster than they may otherwise.
Independent consultant Karin Lloyd says: “What’s important about rehabilitation in the insurance context is that it can encompass anything that helps to move people towards getting them back to a productive life, which is what most people want to do. It gives them dignity and purpose.”
