LifeSearch's journo competition winner
Round up
2 – the number of life insurance rate changes announced since the last bulletin, both Legal & General
29% – the proportion of LifeSearch Q1 customers who are 45+ which is why we welcome the FSA decision to simplify regulation for over 70s whole of life policies.
39% – the number of UK households who do not save, the worst level since the 1950s
92.5% – the number of Critical Illness Cover claims paid by Standard Life in 2006
30,000 – the number of people who became insolvent during Q1, an increase of 23.9% on the same period in 2006
** Journalist competition winner **
Congratulations to David Sawers, editor of Health Insurance magazine, who wins our latest competition for the IPod shuffle and HMV vouchers. David’s guess was 2,532 life insurance and protection applications, just 30 away from the actual number of applications received of 2,502.
This month’s competition asks you to guess the minute of the first goal in this season’s Champions League final, to be played on Weds May 23rd (yes, it clashes with the Headline Money awards!). The closest entry wins 2 football shirts of your choice (or the cash equivalent if you prefer).
NEW Out of context section (don’t worry, it’s anonymous – but you know who you are!)
‘I'm one of those annoying people who stands behind you on the quiz machine and shouts out the answer only to say sorry’
‘I like going to see the ombudsman they make me cookies’
‘The new playlist is up and running, no more David Gray’
‘Sometimes I wish I could make love to myself’
‘I’ve had my head licked by one of you and my ear sniffed by the other, what is there left to achieve?’
‘I'm a Prudential sales director and I like you’
Comments of the week
'People who fail to tell their insurer about a past health problem – even something as minor as a visit to the doctor about a headache a couple of years earlier – could have their life insurance or other protection claim turned down. It’s easy to assume that if you take out life insurance, critical illness or income protection you’re protected if things go wrong, but check the small print carefully and make sure you understand what is and isn’t included before you buy.'
Malcolm Coles,
Editor, which.co.uk
Heroes of the week
Standard Life
Who this week announced new paid and declined critical illness claims statistics showing the company more than halved the number of declined cases compared to the previous year, despite recording claims in the same way.
The company paid 360 critical illness claims in 2006 totalling £18.7m while declining 7.5% of claims compared to 18% in 2005. Of the claims declined 3.3% were because the claim did not meet the policy definitions and 4.2% were due to non-disclosure.
While 92.5% isn’t perfect, it’s a very good step in the right direction.
Scottish Provident
Who also published new critical illness statistics this week. The firm’s latest critical illness report shows the company paid more than £95.5m in claims during 2006.
While 57% of claims were for cancer, worryingly 5% were for children’s cover, which is automatically included in the policy.
A total of 1566 claims were assessed, of which 1257 (80.3%) were paid. Of the 309 unpaid claims 9% were rejected due to not meeting the definition and 10.7% due to non-disclosure.
We name providers who publish such statistics as our heroes to promote honesty and transparency. There is little doubt that the more informed consumers and advisers are about exactly how these policies work the more the industry’s paid claims ratios will improve.
Financial Adviser Life and Pensions Award Winners 2007
Life Assurance Provider of the Year – Legal & General
Protection Provider of the Year – Legal & General
Health Insurance Provider of the Year – BUPA
Term Assurance Provider of the Year – Legal & General
Critical Illness and Income Replacement Provider of the Year – Scottish Provident
Small IFA of the Year – Baigrie Davies and Co Ltd
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