Mr Knowles adds: “There are many reasons why the claim might be lower.
"One of my own personal thoughts is that it [claims reporting] could stifle some innovation in new products.
"For example, in Private Medical Insurance they offer moratorium-based underwriting, but we don’t normally see this in protection for fear that some claims will not pay out when caught up in the exclusion. But, offering such an exclusion could mean that we are able to insure more people.”
A very vocal proponent of claims stats reporting, LifeSearch last year collaborated with Morgan Ash on a paper focused on making the claims experience great for claimants.
Titled, ‘Feel-Good Claims’, the paper was based on the notion that ‘The claim is the core product, not the policy’.
This is all about ensuring an amazing experience for the customer: from making a good recommendation at the outset to ensuring the best customer service at claim stage.
The value of claims stats reporting is summed up neatly by Emma Walker, chief marketing Officer at LifeSearch.
Ms Walker says: “I love claims stats. I think they should be updated and published more regularly. They justify good advice. They hold insurers to account. The old adage a picture is worth a thousand words can be replaced with impressive claims stats are worth x amount of Amazon vouchers and other policy extras and freebies.
“At the end of the day, it usually comes down to cost, but when people are on the fence about which insurer to choose, we find claims stats help greatly with decision making.”
Matthew Chapman, commercial director at Plus Financial, however, has mixed views. He says: “As an adviser, I was always somewhat sceptical of a provider’s claims statistics. The need to publish them appeared symptomatic of an industry with something to hide.
“However, over time I have come to learn more about the hugely important role that publishing claims statistics has had in improving industry standards, educating advisers and holding providers to account.
“The challenge is that they don’t lose their value. It would be good to see less focus on the headline numbers and far more attention given to the reasons why claims were unsuccessful and what can be done to avoid this from happening, which some insurers already do, but it isn’t loud enough.”
