AXA is the latest insurer to promise to publish statistics that show the number of consumer income protection (IP) claims that it pays and declines.
The insurer believes that publishing claims statistics is a good thing and something that it intends to do in the future.
Although an analysis of paid and declined IP claims statistics is complex, there is a growing body of evidence which suggests that consumers find it reassuring to know that their insurer is committed to paying a claim when it is valid and that paid claims data would go a long way to help.
Stuart Lawson of AXA, says that although the insurer has not published its claims statistics to date because it has only been in the market for a short time, it believes it is important to do so from a transparency point of view.
Critical Illness insurers have published their claims statistics for years, but some have expressed regret at doing so because the declined rate has generated a good deal of negative coverage in the consumer press. Roughly translated, some insurers do not like figures which actually show claims information, as some are not as generous as others at paying claims
Currently, only six income protection providers reveal the proportion of claims that they pay. They are AEGON Scottish Equitable, Cirencester Friendly, Dentists & General, Holloway Friendly Society, LV= and Pioneer.
Income protection insurance: News update: October 2008