Legal and General has paid out £30m on claims that would otherwise have lapsed in 2017 thanks to its Early Warning System (EWS).
In the year-to-date, the protection provider has received 380 claims from individuals who have benefited from the EWS, which was designed to notify advisers when their clients’ policies are about to lapse.
Since 2010, L&G has paid out a total of £201m from 2,665 claims as a direct result of the system’s introduction.
Craig Brown, director, intermediary, at L&G, said: “At Legal & General, we understand the importance of customer satisfaction for an adviser’s business. Through the introduction of our Early Warning System, we aim to support advisers in ensuring they secure the best outcomes for their clients.
“By sending out an alert when a policy is nearing the end of its term, this free tool is designed to flag a possible future lapse in cover, thereby facilitating a discussion between advisers and clients about renewing their insurance before they find themselves without it.”
Emma Thomson, life office relationship director at LifeSearch, commented: “L&G were pretty much the first to introduce that; it has been in place for several years and they have improved it. Other insurers have adopted similar systems.
“Empowering the intermediary to get involved as early as possible is fantastic. A lot of clients don’t realise there is a problem with their direct debit, and it does put them at risk. Hats off to L&G for leading the way.”
simon.allin@ft.com
