How to make the most of protection claims stats

“We want advisers to use the information in the report to highlight to their clients the importance of being open and honest during the application process, even if at times it may feel awkward or that they’re sharing sensitive information,” adds Ms d’Esterre.

What’s the adviser view?

There is much love for claims stats, it seems, among the adviser community – or at least from those who use them. But there is room for improvement. 

Although an advocate of claims reporting, Alan Knowles, managing director of Cura Financial Services and Chair of the protection distributor's group (PDG), adds that having a league table and showing a company pays 1 per cent more than another doesn’t really help, as such a small percentage doesn’t make one provider better than another. 

Mr Knowles adds: “There are many reasons why the claim might be lower.

"One of my own personal thoughts is that it [claims reporting] could stifle some innovation in new products.

"For example, in Private Medical Insurance they offer moratorium-based underwriting, but we don’t normally see this in protection for fear that some claims will not pay out when caught up in the exclusion. But, offering such an exclusion could mean that we are able to insure more people.”

At the end of the day, it usually comes down to cost, but when people are on the fence about which insurer to choose, we find claims stats help greatly with decision making.--Emma Walker

A very vocal proponent of claims stats reporting, LifeSearch last year collaborated with Morgan Ash on a paper focused on making the claims experience great for claimants.

Titled, ‘Feel-Good Claims’, the paper was based on the notion that ‘The claim is the core product, not the policy’.

This is all about ensuring an amazing experience for the customer: from making a good recommendation at the outset to ensuring the best customer service at claim stage. 

The value of claims stats reporting is summed up neatly by Emma Walker, chief marketing Officer at LifeSearch.

Ms Walker says: “I love claims stats. I think they should be updated and published more regularly. They justify good advice. They hold insurers to account. The old adage a picture is worth a thousand words can be replaced with impressive claims stats are worth x amount of Amazon vouchers and other policy extras and freebies.

“At the end of the day, it usually comes down to cost, but when people are on the fence about which insurer to choose, we find claims stats help greatly with decision making.”