Zurich Pays 97% of Protection Claims in 2019

Zurich Pays 97% of 2019’s Protection Claims

Zurich’s latest claims data for the year to December 2019 have just been released, with the insurer’s statistics showing it paid 97% of all the protection claims it received last year.

These were broken down into the following market sectors, with Zurich paying:

• 99% of Life Insurance claims
• 98% of Income Protection claims
• 90% of Critical Illness Insurance claims.

Zurich’s Life Insurance Claims in Figures…

Zurich Life Insurance paid more than £203.9 million in claims in 2019, including one child bereavement claim. Zurich declined to pay just 1% of Life Insurance claims last year.

These declined claims included situations where clients failed to give information about high alcohol consumption, a history of smoking or investigations for a health problem at the time of the application, revealing the importance of being fully open and honest when it comes to applying for protection.

Zurich’s Income Protection Insurance Claims in Figures…

Zurich paid Income Protection benefits totalling £7.2 million in 2019, with the average monthly payout standing at £1,534. Zurich had a total average of 394 active claims per month throughout 2019.

Cancer and neurological disorders were the most common causes of claims (both standing at 18%) of total claims. This was followed by musculoskeletal disorders (16%) and mental health issues, including anxiety, stress and depression (13%).

Zurich’s Critical Illness Cover Claims in Figures…

Zurich paid more than £76.4 million in Critical Illness Insurance claims last year, with the average Critical Illness Insurance claimant being just 50 years old.

The most common reasons for a CIC claim were:

• Breast cancer (18%)
• Heart attack (12%)
• Prostate cancer (6%)
• Stroke (6%).

Benign brain tumour was the most common cause of children’s Critical Illness Insurance claims (21%) and partial claims on adult policies (14%).

Of the 10% of Critical Illness Insurance claims which were declined last year, almost 2 in 3 such cases were due to the fact that the individual attempted to claim for a condition, such as a benign tumour, that isn’t covered by a Critical Illness Insurance policy.

Tom Conner :: Director

“Zurich has published a very detailed claims report for 2019, revealing not just the proportion of claims it paid but also why it paid those claims and why, in some circumstances, it was unable to do so.

“Successful claims are always a positive news story, with insurers consistently paying in excess of 90% of claims across all protection insurance policies, so it’s great to see Zurich publish these figures. However, the statistics behind declined claims are just as vital as they reveal the importance of being fully transparent when taking out a policy.

“No insurer likes declining claims, but where a client doesn’t disclose the full medical picture in the application stage, for example omitting to tell the insurer about medical investigations or lifestyle factors, such as smoking or drinking habits, it would have impacted the insurer’s ability to offer cover in the first place.

“That’s why, at Drewberry, we go through the application with you over the phone to ensure you have a helping hand throughout the entire process and can be sure the right boxes are being ticked on your application form, minimising the risk of a non-disclosure impacting on your ability to claim further down the line.”