Income Protection Insurance Should Be More Transparent

The work of UK insures and the Association of British Insurers (ABI) resulted in significant improvements in transparency across the insurance sector and income protection sector in particular.

Now, British insurers publish paid claims statistics one by one with Aviva and LV= being the ones to announce they pay out over 90% of all critical illness claims.

The problem, however, is that not all insurance companies are willing to disclose their statistics on income protection claims.

In the opinion of Matt Morris, senior policy advisor at LifeSearch, comparison website, the point of publishing statistics is not to compare insurance companies and put some of them to shame. Instead, the point is to make policyholders believe that income protection providers actually pay when needed.

As such, Mr. Morris highlighted that "We have to make sure we are ready to meet that desperate need for cover from the unprotected public. That starts by making sure people have faith in the products we offer."