Canada Life has revealed it paid 100 per cent of its death benefit claims – the first time it has announced its claims figures.
Paul Avis, marketing director of Canada Life, said: “These are the first claim statistics I have been able to release. The Group Risk Development average is 99.8 per cent, and we cover approximately 2.4m people.
“As the war for talent begins to rage, and with every employer now offering a pension, staff retention and attraction is becoming ever more important.
“Group life assurance could be the most important benefit an employer buys.”
| Simply Class |
Canada Life’s new Simply Class Group Life Assurance product has been designed to maximise the opportunity presented by the 1.1m new-to-pensions discussions as a result of auto-enrolment this month. It automatically provides quotations for 1x and 2x salary and fixed benefits of £25,000 and £50,000. Simply Class is available for businesses with two to 50 employees and has a minimum premium of £480 a year, with flexible commission of up to 30 per cent available every year that the contract remains in force. Mr Avis said these benefits could be available from as little as 0.2 per cent of salary. |
Mr Avis said auto-enrolment represented an opportunity for advisers to sell additional benefits such as protection.
He said: “My fear is that advisers will miss the boat for auto-enrolment and will do nothing, but this is the biggest opportunity to replace post-RDR charge capping just from the fees.”
This came as Royal London paid 90 per cent of its income protection claims in 2014. Debbie Kennedy, head of protection for Royal London, said: “The crucial role an income protection product can play by providing ongoing support for someone during unexpected ill-health and disability, is evident in the fact our claims pay out for more than four years on average.”
Its intermediary protection business, which includes Scottish Provident and Bright Grey, reported 246 income protection claims in payment, totalling just over £3.2m.
In 2014 there were 73 new claims, of which 90 per cent of income protection claims were successful, with the average payout more than £13,000. The average age was 41.
Adviser View
Trystan Lewis, financial planner at Chester-based Griffin Wealth Management, said: “It is always assuring to hear that the majority of claims are paid out, as consumers can be quite sceptical of insurance products. It is an important topic that must discussed if you are giving holistic financial advice.”
