LV= improves CI and IP claims paid figures

LV= has improved its claims paid figures for both critical illness (CI) and income protection (IP) during last year.

The provider paid 93% of its CI and 92% of IP claims (both up from 90% in 2009) and also revealed an increase in the sums paid out.

It believes that publishing these statistics encourages greater trust in the industry and added its voice to a growing chorus calling for industry-wide publication of IP claims data.

Both rates of claims declined for non-disclosure fell from 3% to 2.9% (CI) and 2.7% (IP) with not meeting the definition also dropping from 7% to 3.6% and 5.7% respectively.

The payments made rose to over £9m for CI (up from £7.9m) but only slightly increased for IP to £12m from £11.9m.

Mark Jones, head of protection at LV=, explained the importance of publishing results and urged more providers to do so.

"When people make a claim on a protection policy, it is often at an extremely difficult time in their life," he said.

"As such it is absolutely vital that we are a provider that can be trusted, not just to pay claims, but also to treat claimants in a caring and professional manner. Our transparency in publishing protection claims statistics reflects our policy of openness.

"We want to make sure that advisers and consumers alike are fully aware of why claims can be rejected, so that we can all play a part in keeping rejections to a minimum," he added.

The insurer has produced guides detailing its claims performance that are designed for advisers to use with clients to help them understand why it is important to disclose full information when applying for a policy.