You are here: Home - Better Business - Business Skills -

Protection pay stats help advisers push the case

by: Damian O’Connor, managing director of Roxburgh Financial Management
  • 19/04/2017
  • 0
Protection pay stats help advisers push the case
It’s been an encouraging start to the year for the protection market with providers revealing encouraging claims paid data.

As most mortgage advisers now recognise, discussing the need to protect mortgage payments and the client’s income is an essential, but not always straightforward, conversation to have.

It can be complex for all kinds of reasons. One of the main reasons is lack of trust – many people believe insurers go out of their way not to pay claims. This is the time of year when insurers begin to release their claims statistics for the previous year and the results are always far better than most clients expect.

British Friendly kicked off the year by revealing it paid 96.1% of all income protection claims in 2016. More recently, AIG announced it paid 95% of life claims and 92.3% of critical illness claims while Legal and General said it paid 98.6% of life claims, 95.9% for terminal illness, and 92.56% for critical illness.


Building trust

The value of these stats isn’t necessarily to compare insurers and pick the one that pays a percentage or two more than the rest. The value for an adviser is that it provides the ammunition to dispel a client’s cynicism about the protection industry’s willingness to pay out.

Most insurers produce marketing material that explains in detail how much has been paid, why claims were declined, speed of payment and what conditions were most prevalent. Knowledge combats fear, so if you have a reluctant client, this information can help to persuade them that they aren’t wasting their premiums.


Adding value

Already this year there have been changes to the government’s Bereavement Support system; a new product for people with HIV; upgrades to VitalityLife’s Serious Illness Cover and Scottish Widows’ Critical Illness product, to name just a few.

Over the coming months, I expect more product launches designed for specific types of health conditions and continuing improvements to existing products. This is all good news.

Complexity and an extensive range of good quality products means the adviser is adding value by helping the client to navigate this maze of choice. When protection is not your specialism, staying up to date on the changes and making sure you use all the tools at your disposal to reassure the customer is crucial.

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Octopus completes £6.4m lending in one week for Black Book Finance

Specialist lender Octopus Property completed £6.4m of lending in just one week with Michael Clapper’s new distributor Black Book Finance.