Statistics don’t really do it for me. Yes, percentages of claims paid are impressive, as are the sheer millions of pounds that are paid out each year by insurers. But honestly, does any insurer really stand out like this?
Earlier this year the Association of Financial Mutuals stated that nine of its members paid 93.7 per cent of income protection claims in 2017. And personally, I don’t think target audiences are listening to the positive message these stats offer. I think the immediate thing in many people’s minds is: ‘I’m going to fall into that 6 per cent of declines’.
Saying that, Holloway Friendly has really caught my eye because of its claims record. It recently issued a press release saying it paid 100 per cent claims for three months running. Now that stands out.
If you have someone that is a bit dubious about insurers and how trustworthy they are, you can’t do much better than send them to an insurer with a 100 per cent claim payout. I am not suggesting insurers with less than a 100 per cent payout rate are not trustworthy; I know they are. I know that the 6 to 7 per cent of claim rejections are typically due to non-disclosure or the customer not fitting claim eligibility criteria. But, for your average person with no insurance knowledge, that 6 to 7 per cent of claims being declined can cast doubt.
Holloway Friendly provides income protection that is not occupation class-based, meaning blue collar (manual) workers are priced the same as white collar (office-based) workers. Its recent price reductions have further enhanced their competitive stance in this regard.
Increased staff numbers, combined with its rebrand, makes me believe Holloway Friendly is definitely an insurer to watch, and I am looking forward to seeing how it continues to grow in the next few years.
We have all heard people say that insurers will do anything to avoid paying a claim. No matter how many amazing stats we throw out there, this is still being said.
Why? I think that providers in the insurance industry are seen as in it for themselves. But I think the increase of aftercare support services that we are seeing, such as Red Arc and Best Doctors, will be a key step forward in moving the industry away from the dark side in the public’s perception.
Humanising the industry through real life stories like the Seven Families initiative is essential, in my eyes.
Kathryn Knowles is managing director of Cura Financial Services