Protection  

Early warning system sees £44m of claims paid

Early warning system sees £44m of claims paid

Legal & General's early warning system helped clients to the tune of £44m in 2016, latest data has shown.

According to the insurer, its early warning system (EWS), which alerts brokers and clients to lapsed policies and enables brokers to renew clients' cover, meant £44m worth of claims were able to be paid out last year.

Without the EWS, these lapsed policies would not have been renewed, and clients would not have had cover to help them in the event of accident, sickness, unemployment and other reasons behind these claims.

Since 2010, more than £180m worth of paid claims has been recorded as a result of policies being renewed thanks to the EWS alerting brokers when policies have lapsed.

The news came as Legal & General celebrated its sixth annual Business Quality Awards, which recognises the work of advisers and brokers in making the customer experience better.

Speaking at the beginning of the event, Bernie Hickman, recently appointed chief executive of Legal & General Insurance, commented: "It can be tough to sell life insurance. It's easy to sell a lifetime mortgage, for example, as the client can get something for their outlay. But the reality is that it may not be to the advantage of the family.

"However, it can be hard to sell insurance - you're essentially selling something that you hope a client will never get their money back on. It's great for the family who are protected in the event of a claim, but it is difficult to sell.

"This is why it is vital for advisers and intermediaries to help customers realise the importance of having insurance."

Mr Hickman, who has returned to retail insurance after a hiatus working in other fields, said: "The industry has moved on positively over the past few years, with technology and better use of data to make the advice journey more effective.

"We need to be using data to make things better and easier for the client."

With the focus on the use of technology, Legal & General created a new category for its sixth Business Quality Awards, that of Data Precision, which was won by London & Country Mortgages.

This was in recognition of the work London & Country had done to use data to improve accuracy in all of its processes and practices, and to make sure the customer had the best possible service.

Lucy Brown, head of protection sales for London & Country Mortgages, said: "We are focused on providing our customers with the high quality protection advice they need to make an informed decision about their protection needs."

Other winners included Cardiff-based broker Vita, which for the third year in a row won the outstanding performance award, and Futureproof, which was recognised for its "excellent understanding of unusual underwriting requirements".