Aegon UK income protection claims up 10% in 2013, from 83% in 2012
The claims statistics released today reveals that last year, Aegon UK paid just over 93% of claims received, an increase of more than 10% on the previous year. Income protection sales which represent less than 2% of Aegon UK’s overall protection sales in 2013, at least show that in the last twelve months the insurer is starting to catch up with other providers.
In 2013, Aegon UK paid out a total of £342,100 in income protection claims to a total of 27 customers. Of the 29 claims received, two were declined. One was declined due to not meeting the definition and one was due to misrepresentation.
Representing 28% of the claims, sadly cancer was the top reason for claim followed by musculoskeletal related conditions (21%).
Dougy Grant, Protection Director at Aegon UK, said: “The low number of claims we continue to receive on this type of protection policy can impact the figures dramatically. With only 29 claims received last year, a single decline can make all the difference, so while this year we see an increase in the number of claims paid, it will only take one declined claim next year to completely change our story. However, while we don’t believe this data can provide any meaningful like for like comparison, we continue to share it for the sake of complete transparency for both advisers and customers.”
I believe that the jump from 83% (2012) and 93% (2013) is down to the insurer improving the policies and the illnesses / conditions it covers. This approach means more policyholders will be succesful when they have to make a claim. It also helps that insurers now compile these figures using the ABI guidance for calculating claims statistics.