Challenging Misconception That Insurers Don't Pay Out - InsuranceNewsNet

InsuranceNewsNet

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading newswires
Topics
  • Life Insurance
  • Annuity News
  • Health/Employee Benefits
  • Property & Casualty
  • Advisor News
  • Washington Wire
  • Fiduciary Rule
  • INN Exclusives
  • Newswires
  • INNsider
  • INN Exclusives
  • NewsWires
  • Magazine
Sign in or register to be an INNsider.
  • INN Exclusives
  • NewsWires
  • ★ Regulation News
  • Podcast
  • Magazine
  • About
  • Advertise
  • Editorial Staff
  • Contact
  • Susbcribe

Get Social

  • Facebook
  • Twitter
  • LinkedIn
  • Google+
Insider
newswires
newswires RSS Get our newsletter
Order Prints Share
July 14, 2018 newswires No comments Views: 0

Challenging Misconception That Insurers Don’t Pay Out

Targeted News Service (Press Releases)

LONDON, England, July 13 -- Aviva, a provider of insurance, savings and investment products, issued the following news release:

Aviva is urging UK insurers to help debunk the myth that insurance does not pay and to do more to explain how insurance claims work.

Consumers believe insurers try to avoid paying claims

Common misconceptions that insurance does not pay should be challenged says Aviva, which has published its first UK-wide claims report covering aspects of its individual and commercial insurance business.

The consumer research commissioned by Aviva shows that 55% of consumers believe insurers will always try to avoid paying claims if they can with the average payment considered to be just 52% of all claims.1

The report shows that in 2017 Aviva accepted 96% of insurance claims made by individual and business customers in the UK, paying out more than pound sterling3.6 billion in cash settlements and services - equivalent to more than pound sterling10 million every single day, or pound sterling7, 000 every minute.2

The reality is that every year about 120, 000 vehicles are repaired through Aviva car insurance - almost enough to fill every lane on the M25 motorway - and enough carpet is replaced through home insurance claims to cover 11 football pitches.

Nearly one million Aviva customer claims (961, 973 or 96% of claims made) were accepted last year across motor , home, travel, protection, health and commercial business insurance.

Aviva's report also explains the common reasons why 4% of all the claims it received could not be paid, and includes helpful case studies from customers as well as frontline employees, illustrating how its claims approach is about more than just providing financial support.

The impact that the insurer's investment in digital tools is having on making the claims process simpler and faster is also evidenced.

25 percent Aviva UK claims reported digitally by end of 2017

The UK's largest insurer says there is more that the market as a whole can do to simplify and improve customers' experience of making an insurance claim, particularly when they often do so at the most challenging times in their lives.

At the same time, consumers must take more responsibility for their insurance, such as:

* being clear on their policy terms before they purchase, and

* working closely with their insurer to provide full information about their circumstances, as needed.

Andy Briggs, Chief Executive Officer, Aviva UK Insurance, said:

"Misconceptions that insurance does not pay out when it is needed or that it is unnecessary are leaving UK families and businesses potentially exposed through a lack of suitable insurance. If people have a sense that insurance is not going to pay out, they won't bother buying it.

"We are calling on the industry to join us in comprehensively publishing information about how insurers manage customer claims, why some claims are declined and how consumers can do more themselves to understand whether the cover they have is what they need."

"Across the industry we know that insurance is a reliable and critical way of providing financial protection when things go wrong, whether it involves a family member, a personal possession or a business. In the vast majority of cases, insurance claims are accepted and there are additional and very important support services that help customers get back on their feet.

"When it comes to making a claim we want Aviva customers to feel really clear about what they are covered for, so we are actively looking at ways that we can help them understand their cover in a simple and unequivocal way. This is something that we believe the whole industry needs to commit to on behalf of customers."

UK claims paid by Aviva in 2017

To view the table, click here: https://www.aviva.com/newsroom/news-releases/2018/07/aviva-first-UK-claims-report/

Source: Aviva UK claims report 2017

Common reasons for a claim being declined

Just 4% of UK claims across individual and commercial business insurance were declined last year by Aviva. Common reasons include:

* Lack of additional cover to the standard policy - eg if a customer didn't choose additional cover as part of a home insurance policy for events such as accidental damage or cover for damage to belongings outside of the home

* Making a claim for something that falls outside of the policy terms - eg the effects of gradual wear and tear or damp and dry rot are not covered by a standard home insurance policy

* The policy definition for a claim is not met - eg some critical illness claims were declined because the condition the customer was claiming for was not covered by their policy

* A pre-existing health condition/lifestyle choice was not declared - eg pre-existing health conditions or lifestyle choices that are not declared by the customer during the application process can lead to group and individual protection claims being declined

Source: Aviva UK claims report 2017

Read the full Aviva UK claims report (https://www.aviva.com/content/dam/aviva-corporate/documents/newsroom/pdfs/reports/aviva-UK-claims-report-2017.pdf)

Older

Del. Norton to Testify Opposing All Anti-Home-Rule Riders to D.C. Appropriations Bill at Rules Committee Markup

Newer

Security Council Sanctions Committee Concerning Iraq Removes Two Entities From Its Sanctions List

Advisor News

  • Financial Advisor Fined In $1M Scam
  • Mercer Advisors Acquires Arbor Asset Management
  • M&A Market Likely To Cool Off, Survey Finds
  • Are Your Clients Picking The Wrong Money Goals?
  • MDRT Study Finds Consumers Want Technology To Complement, Not Replace Human Advisors
More Advisor News

Annuity News

  • Lincoln Financial Introduces Annuity Designed For Retirement Rollover Dollars
  • IRI Urges NAIC To Proceed Cooperatively With SEC On Suitability
  • P/C Broker Gallagher Widens Retirement Practice Into IMO Space
  • TIAA Launches Alexa And Chatbot Capabilities
  • What Should Your Clients Look For In A Retirement Plan?
More Annuity News

Health/Employee Benefits

  • Rising Awareness Regarding Health Insurance Policies To Drive The Market
  • Bill Expanding ‘Insure Oklahoma’ Program Passes Senate Committee
  • Sen. Brown Warns Against Government Insurance For All
  • How A Missing Form Prevented A Widow From Claiming Her Husband’s Pension
  • Florida Lawmakers Considering Health Care Changes
More Health/Employee Benefits

Life Insurance

  • Florida Police: Niece Steals $188,000, Life Insurance, From Aunt
  • P/C Broker Gallagher Widens Retirement Practice Into IMO Space
  • MDRT Study Finds Consumers Want Technology To Complement, Not Replace Human Advisors
  • Accountant Allegedly Stole $2M From Firefighters’ Life Insurance Fund
  • Securian Financial Posts Solid 2018
Sponsor
More Life Insurance

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.
select Newsletter Options

Most Popular

  • P/C Broker Gallagher Widens Retirement Practice Into IMO Space
  • Understanding The Benefits Of Whole Life Insurance
  • NAIC Group Puts IUL Illustration ‘Multipliers’ Under Microscope
  • What If The Market Goes Up? Why An FIA Is Better Than Stocks
  • Why A Down Market Is The Perfect Time To Recommend An FIA

Featured Offers

Text Ads

Press ReleasesAll press releases

  • Great American’s Annuity Customers Share Their Secrets to a Great Retirement
  • Securian Financial Introduces Affordable, Protection-Focused IUL with No-Lapse Guarantee
  • TD Ameritrade Institutional Integrates with iPipeline to Automate New Account Opening
  • RFP R2019-78
  • Bunker Launches Live Certificates of Insurance, A Modern Solution to Insurance Fraud and Non-Compliance
Add your Press Release >

Topics

  • Life Insurance
  • Annuity News
  • Health/Employee Benefits
  • Property and Casualty News
  • Advisor News
  • Washington Wire
  • Regulation

Top Sections

  • INN Exclusives
  • INN Insider

Our Company

  • About
  • Editorial Staff
  • Advertise
  • Contact

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter Google+
© 2019 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • Sitemap
  • AdvisorNews

Sign in with your INNsider Account

Not registered? Become an INNsider.