Income Protection  

Exeter pays 94% of income protection claims

Exeter pays 94% of income protection claims

The Exeter has released its income protection claims statistics for 2016, which show 94 per cent of all claims received were paid during the year.

Of the 6 per cent of claims that were declined by the friendly society, 4 per cent were for non-disclosure and 2 per cent were due to the claimant still being able to work in their own occupation.

The largest number of payouts were a result of injuries and accidents, accounting for 37 per cent of all claims received.

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Exeter chief executive Andy Chapman said: “Once again we have delivered on our promise and paid 94 per cent of all claims received.

"Whilst the debate about whether claims statistics should or shouldn’t be published has been reignited, there has never been any question in my mind.

“We’re committed to sharing our claims statistics every year. Our only focus is on how we can make our information more engaging to highlight the crucial importance of income protection to more advisers and consumers.”

Alan Lakey, director at Highclere Financial Services, said: “The statistics are in line with the rest of the friendly societies.

"It is fair to say some of the other companies have a less appealing record.

“Exeter offer own occupation definition of disability, whereas others offer activities of daily living – with that, you have to be unable to perform three out of six daily tasks, and the test is quite onerous.

“Some of the companies that offer activities of daily living offer a slightly cheaper policy, someone goes for it and finds they can’t claim – that is a black eye for the industry.”

Mr Lakey added that some advisers do not consider friendly societies because they are unaware of the service they provide.

Emma Thomson, life office relationship director at Lifesearch, said Exeter’s statistics compared well with other providers offering similar products.

She said: “What it shows is only a small number of claimants are not paid.

"Do I think it can be improved on in the future? Yes. I don’t think we should be complacent, but in the grand scheme of things I think they are very strong numbers.”