Provider still has concerns over lack of market-wide methodology

Aviva paid a total of 91.16% of income protection (IP) claims in 2011, Health Insurance reveals today.

The provider, which has not shared IP claims paid statistics with the media until now, told HI that it declined 8.84% claims during the twelve months to 31 December 2011. The figures are for group IP and individual/consumer IP combined.

There has been debate across the protection industry about the issue of publishing claims statistics for IP, with Aviva being one of the providers which had come in for criticism for refusing to do so.

While it is common practice for providers of critical illness insurance to publish their claims paid statistics – something which has resulted in plaudits in the national and trade press for transparency – the situation in the IP market is different.

Although the majority of friendly societies and mutuals publish their IP claims paid statistics, some larger insurers – including Aviva – have declined to do so, arguing that there is no “industry standard” methodology used to come up with the figures.

That had led to speculation – which now appears to be unfounded – that some insurers were paying out on less than 70% of claims.

A spokesman for Aviva said the provider had never kept the figures “secret” and while it had chosen not to share the data with the media because it had concerns over clarity, it has shared the figures with the Association of British Insurers (ABI) in the past.

The spokesman said the insurer continues to work with the ABI and the industry as a whole to agree a format so that statistics can be presented in a consistent way.

Look out for an analysis of IP claims statistics – including the latest from a number of providers around the market – on www.hi-mag.com next week and in the February issue of Health Insurance magazine.