Protection in Numbers  

Providers adapt to new ABI claims standard

Some providers have already been reporting based on new claims that have come in during the calendar year, rather than reporting figures that also take into account claims in payment from the previous year or years.

Peter Hamilton, head of strategic partnerships for Zurich, said: "We have always taken the ABI's new approach.

Article continues after advert

"Given income protection claims can sometimes be complex, we think that this transparency is helpful to both customers and advisers giving them a true reflection of providers' payout rates as well as the reasons why some claims are declined." 

This comes following reports in FTAdviser earlier this year over the potentially misleading methods of publishing claims statistics, which could not only cause confusion for advisers but also add to the distrust with which some members of the public perceive financial services providers.

At the time Phil Hull, proposition and portals manager at Holloway Friendly, explained why he did not agree with former ABI method, which includes all previous claims in payment. 

He told FTAdviser: "My gut feeling tells me this isn't right. Surely this massively skews the previous year's performance?"

Mr Hull suggested it might be better to provide information such as the total of new claims in any one year, the total in force in the previous year, and the total amount of money paid out. 

simoney.kyriakou@ft.com