LV= Publishes 2009 Claims Payout Performance
on: March 26, 2010, 12:08 am
Protection specialist LV= has published its 2009 protection
claims record, which shows that 90% of claims were paid across both
income protection and critical illness policies during the year.
LV= paid out nearly £40m to its protection policyholders last year, including £11.9m
in income protection claims, and more
than £7.9m in critical illness claims. Over the years, LV= has maintained a consistent track record of paying protection
claims with a steady upward trend in the percentage of claims accepted.
Mark Jones, LV= Head of Protection, said: "Our consistently high and improving
claims payment rate illustrates our firm commitment to support customers in their
time of need, and to limit the risk of customer confusion at the point of applying
for a policy. This success is in part down to investment in our tele-interviewing
capability, exploring the reasons for non-disclosure rejections and putting measures
in place to reduce them, and in intelligent underwriting.
"When people make a claim on a protection policy, it is often at an extremely
difficult moment in their life. As such it is absolutely vital that we are a
provider that can be trusted, not just to pay claims, but also to treat claimants in
a human and professional manner.
"Our transparency in publishing protection claims statistics reflects our policy of
openness. We want to make sure that advisers and consumers alike are fully aware of
why claims can be rejected, so that we can all play a part in keeping rejections at
2009 protection claims data from LV= reveals that:
- The top four causes of income protection claims over the last 12 months were
mental disorders (29%), musculoskeletal disorders (20%), circulatory system
disorders (11%) and cancers (11%).
- The average age of a female income protection claimant was 44 years, with male
claimants two years older on average at 46 years.
- The average income protection claim paid out for a period of eight years.
- Cancer claims accounted for six out of ten critical illness claims (61%), rising
from 57% in 2008.
- The average critical illness claims payment in 2009 was £72,500, up from £63,820
LV= has produced separate guides detailing its income
protection and critical illness
claims performance for 2009. These guides are designed for financial advisers to use with their clients to help them
understand why it is important to disclose full information when they apply for a
policy. The guides also demonstrate the 'more than just a cheque' benefits from
LV=, which include the Extra Care claim support service.
Also detailed in the guides are examples of claims that LV= has paid out during
2009, bringing to life actual customer scenarios and showing the benefits they are
now receiving from their LV= protection policies.
- ends -
Notes to editors
LV= is a trademark of Liverpool Victoria Friendly Society Limited (LVFS) and LV= is
a trading style of the Liverpool Victoria group of companies.
LV= employs more than 3,800 people, serves over 3.8m customers and members, and
manages around £7.7bn on their behalf. LV= is also the UK's largest friendly
society and a leading mutual financial services provider.
LVFS is authorised and regulated by the Financial Services Authority, register
LVFS is a member of the ABI, AMI, AFS and ILAG.
Registered address: County Gates, Bournemouth BH1 2NF.
For further information and a copy of the 2009 Critical Illness and Income
Protection Claims guides, advisers can visit LV.com/adviser
LV= PR contact:
69 Park Lane
0208 256 6714