Many of your clients will protect their home, mobile phone, or pets with various insurance policies. But how many consider insuring the one thing that underpins all of this? Highlighting the importance of protecting their incomes could be invaluable.
In 2020, we paid more than £10 million in income protection insurance (IP) claims to our members when they couldn’t work due to illness or injury. In total, we paid 91 per cent of all claims.
Long-term financial reassurance
Just over half of claims were paid to members who chose a one day waiting period on their policy. This meant that for those without access to sick pay, we provided immediate financial support. And for members with illnesses or injuries preventing them from working for longer periods – we were there when they needed us.
Our average IP claim lasts for 53 weeks, with the longest claim in payment being paid since 1997. In total, this has provided the member with more than £500,000 in benefit, giving them long-term financial reassurance.
Reasons for claim
We received more individual claims for illnesses relating to Covid-19 in 2020 than any other condition. These accounted for 31.5 per cent of claims with more than £500,000 of benefit paid to members. Musculoskeletal conditions, accidents, injuries and mental health conditions accounted for a further 40 per cent.
Where we couldn’t pay
Unfortunately, there were 172 occasions where we could not pay member claims (nine per cent). The most common reason was due to misrepresentation. This is where questions are not answered correctly at the point of application, leading to a different underwriting outcome.
Quicker decisions for your clients
Our previous investment in our online claims service has continued to deliver efficiencies when processing claims. In 2020, 40 per cent of digital claim forms were returned by members within 24 hours of issue, allowing us to assess and pay claims more quickly.
Protecting incomes should be a priority
Our 2020 claims report contains valuable insights that bring the need for IP to life for your clients. When it comes to insurance advice, it’s time to put income first.
View the full report here.