Bulletin 17, 2007
Round up
6 - the number of life insurance rate changes since the last bulletin (Axa, RL, NU, L&G, NU, BG)
7 - the number of days in which Pru Protect guarantee to process 80% of life insurance and protection applications
16 - the number of positive/balanced articles on life assurance and protection in the consumer press in September
86 - the percentage of critical illness claims paid by Norwich Union between January and June this year
£940,000 - the largest critical illness claim paid so far this year by BUPA
Life Insurance offices and non-disclosure
Four quick points on this very topical issue.
1. Research we are currently working on suggests that the average number of paid critical illness claims has risen by around 3% within the last 12 months. Also, that there is less than a one in ten chance that critical illness cover claims will be declined for non-disclosure - including those who knowingly provide false information.
There will be more detail on this research in our next Life Insurance and Protection Report - number 9, which should be out later this month.
2. It is all very well for life insurance offices to say they will pay claims for certain types of non-disclosure. But the promise is worth next to nothing if claims are declined for 'reckless' non-disclosure when it wasn't reckless in the eyes of the consumer, ombudsman or adviser.
3. The Financial Ombudsman Service is not a happy medium for declined claims because we do not want our clients to be forced to go to FOS in the first place. Do not think it is ok to decline claims just because the Ombudsman exists. Remember these people are often critically ill and whether the claim is paid or not forcing a customer to go to the FOS represents a failure for our industry. Even if the claim is paid the client will have lost faith.
4. If you're fed up with some of the negative press coverage why not set up a truly independent claims panel that reviews all declined claims and then pay claims instead of waiting for FOS to tell you too.
Comments of the week
"It is a Wonderful achievement to bring advice to those who don't have access to it - absolutely Wonderful. Well done"
Giles Brandreth, who hosted the 2007 Cover Magazine Awards, commenting on LifeSearch/ASDA winning the award for Best Intermediary Marketing Initiative of the Year
"Peter (Le Beau) is a wonderful ambassador for the industry; knowledgeable; guru; legend, and the best consultant in the industry by far"
Judges' comment,
Cover Magazine
Heroes of the week
Legal & General
Who this week scrapped the ongoing duty of disclosure. What this means for consumers is that any unexpected changes to their health that occur during the underwriting process will be ignored. Given that underwriting can take months this is a real step forward for the industry and we expect other providers to follow suit.
Norwich Union
Who are advertising life insurance on the telly - and prime time telly too! For many years we have called for providers to advertise the very real need that many consumers have for what we provide. Hopefully the campaign is successful and hopefully life cover is just the start. While there is a thin line when it comes to scaremongering there is nothing wrong whatsoever with making consumers aware of the facts. We hope others follow suit here too.
Peter Le Beau
Who this week was voted the all time most influential person in the life assurance and protection industry by a panel of 16 industry experts. And he's an Arsenal fan too!
See the top ten list below and see www.covermagazine.co.uk for the full list of 25.
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