British Friendly is the first insurer to publish its claims statistics for 2014 showing that it paid 96.7% of income protection (IP) claims.
In total, British Friendly received 912 claims during 2014, of which 882 claims were paid and 30 declined. This was a slight increase on 2013's claim payout figures.
Those declined were for the following reasons:
- 19 due to non-disclosure
- 1 due to premiums in arrears
- 1 due to late notification
- 9 due to exclusions applying
Mark Myers, CEO of British Friendly, said: "We are the very first insurer to publish their claims numbers for the whole of 2014 and I believe all insurers should publish their data by the end of January."
"Presumably all firms monitor this information throughout the year anyway to ensure they are producing good outcomes for their customers or members so publishing them should be a quick turnaround. The Seven Families campaign is raising awareness of income protection around the UK and insurers need to up their game in response.
He added:"For a customer the most important concern is that we will pay their claim - the rest is secondary. Our strong track record of paying claims continued in 2014 by approving 96.7% of all claims received. The moment of truth with any policy is whether it will pay out when you need it."
Mark Dennison, principal at adviser LightBlue UK, said: "We are always pleased to see insurers publishing claims data as it helps to show the underlying culture of the company. A long term excellent track record of paying claims is a key criteria in selecting the right products for our clients."
'One of those unsung heroes of our industry'
'We need to pick up the pace'
'The real scare story is our society's lack of financial resilience'
Covid exclusion applies
Contestant: Is it... Insurance premiums?'