Holloway pays out on almost all income protection claims

Wednesday 15th February 2012

New figures show that Holloway Friendly paid 96.2% of all income protection claims in 2011, an increase on the 95.5% paid out in the previous 12 months.
 
Of the 3.8% of unpaid cases, 67% were due to the increasing number of claimants who failed to provide the correct medical or financial evidence.

Although incorrect evidence formed the highest percentage of unpaid claims, a number were unpaid because clients had not informed Holloway Friendly that their circumstances had changed since they took out their policy and had suffered no financial loss.

A positive was that no claims were denied due to non-disclosure, which demonstrates the benefits of Holloway Friendly’s move to ‘Big T’ telephone interviewing in 2010 and the society’s continued underwriting developments.

Mat Manser, sales and marketing manager, said: “Holloway Friendly has an exceptionally high pay out rate on claims which improves every year, showing that we continue to support our members when they need us the most, be it in paid claims or by meeting their changing needs with continually evolving products and services.

“However, we are concerned by the number of clients we were unable to pay out to, due to changes since inception that we hadn’t been told about.

“We believe this is a big opportunity for advisers to review their cases regularly and get in touch with their clients frequently to make sure that their policies are up to date and appropriate.  

“This may well result in future sales opportunities for the adviser, and will also mean we can continue to increase the percentage of claims we pay out.”