The UK-based income protection insurer, Pioneer, released their claims paid statistics for 2009. It was reported that 94% of claims were paid last year. In the market Pioneer has a reputation for having one of the highest payout ratios in the industry.
Health & Protection Insurance Magazine have begun to compile claims paid statistics for income protection which shed a very positive light on Pioneer's payout rates, having paid out on 98.1% of claims made in 2008.
It is hoped that all leading insurers will release their claims paid statistics each year, thus providing consumer confidence in the quality of the insurance product provided. According to the latest data reported, of those insurers who currently release their claims statistics (seven thus far) not one insurer has paid out on less than 90% of claims made (in either 2008 or 2009).
On face value the claims paid statistics look broadly similar, if not slightly better, than those for critical illness insurance. Members of the Association of British Insurers (ABI) have recently agreed industry wide standards for measuring claims paid accurately so hopefully more income protection insurers will begin to release their annual figures, which is a move that many have agreed to do.
Income protection insurance is a product designed specifically to protect individuals against the risk of income loss due to long-term sickness or injury. With limited government support available, income protection cover provides a solid method of maintaining financial security should incapacity strike.
Drewberry Income Protection are a specialist whole of market insurance intermediary focussed on providing the very best protection advice and broking services.
Update (04/04/2012): Please note that Pioneer changed it's name to Exeter Family Friendly Income Protection in 2011.
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