Insurance Payout Rate Tool Launched By Drewberry

Insurance Payout Rate Tool Launched By Drewberry

by David Tamplin on 26 Jun, 2013

When choosing an insurance provider for personal cover such as life, critical illness or income protection, most of us will usually compare the price; the policy features, terms and benefits; and any exclusions, to determine which insurer offers the most suitable solution.

What you may not have considered, however, is what would happen if you actually needed to make an insurance claim. You could have what you think is the best cover available, but will it be there for you when you actually need it?

“This is something that we wanted to address” explains Tom Conner from protection specialists Drewberry Insurance. “Knowing you have the most suitable protection policy in place can bring great peace of mind, but now and again there are horror stories in the press about insurers trying to ‘get out’ of paying what seems like a reasonable claim”.

Research

Insurance Payout Rate Tool Launched By DrewberryRecent research* in to what influences people buying cover highlighted how payout rates for life insurance are perceived to be much lower than they actually are. The study revealed estimates that just 50% of claims were paid out when actually, the figure was 98% across the top five insurers.

The data highlights that in 2012, the average payout for:

• life insurance was 97% across five insurance providers;
• income protection was almost 90% across eleven providers, with some providers paying out as much as 97% of claims;
• critical illness insurance was 91% across eight providers.

Mr. Conner says: “The truth is that insurers do pay out a high percentage of claims and what you hear about in the media are rare cases – where the claim has been rejected for a valid reason.

“That is why we decided to launch an insurance payout rate tool. This allows you to see the claims payout rates for each insurer for life, critical illness and income protection insurance. We wanted to reassure customers that insurers do in fact have a very high payout rate and that fears of not being paid out in the event of a claim are unfounded.”

The tool has claims data from providers including Aviva, Liverpool Victoria, Scottish Provident, Zurich and Legal & General and enables users to compare overall payout rates per insurer and per product, and see how their claims payout rates have improved – or decreased – year-on-year.

“And this gives customers a quick and easy way to check payout rates of a proposed insurance provider and make an informed decision” explains Mr. Conner.

*Health & Protection Insurance Survey 2013

About the Author

David Tamplin


David Tamplin has been writing for Uk Money Market for 3 years and is the current editor of the site. He has an insurance background and achieved his ACII professional insurance exams in 1993.