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Catch up with the latest press releases from LV=

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LV= publishes 2009 claims payout performance

Press release: 22/03/2010

• 90 per cent of income protection and critical illness claims paid
• Consistently high and improving performance demonstrates commitment to support customers in their time of need
• Publication of statistics encourages greater trust and helps improve acceptance rates

Protection specialist LV= has today published its 2009 protection claims record, which shows that 90 per cent of claims were paid across both income protection and critical illness policies during the year.

LV= paid out nearly £47m to its protection policyholders last year, including £11.9m in income protection claims, and more than £7.9m in critical illness claims. Over the years, LV= has maintained a consistent track record of paying protection claims with a steady upward trend in the percentage of claims accepted.

Mark Jones, LV= Head of Protection, said: "Our consistently high and improving claims payment rate illustrates our firm commitment to support customers in their time of need, and to limit the risk of customer confusion at the point of applying for a policy. This success is in part down to investment in our tele-interviewing capability, exploring the reasons for non-disclosure rejections and putting measures in place to reduce them, and in intelligent underwriting.

"When people make a claim on a protection policy, it is often at an extremely difficult moment in their life. As such it is absolutely vital that we are a provider that can be trusted, not just to pay claims, but also to treat claimants in a human and professional manner.

"Our transparency in publishing protection claims statistics reflects our policy of openness. We want to make sure that advisers and consumers alike are fully aware of why claims can be rejected, so that we can all play a part in keeping rejections at a minimum."

2009 protection claims data from LV= reveals that:

  • The top four causes of income protection claims over the last 12 months were mental disorders (29%), musculoskeletal disorders (20%), circulatory system disorders (11%) and cancers (11%).

  • The average age of a female income protection claimant was 44 years, with male claimants two years older on average at 46 years.

  • The average income protection claim paid out for a period of eight years.

  • Cancer claims accounted for six out of ten critical illness claims (61%), rising from 57% in 2008.

The average critical illness claims payment in 2009 was £72,500, up from £63,820 in 2008.

LV= has produced separate guides detailing its income protection and critical illness claims performance for 2009. These guides are designed for financial advisers to use with their clients to help them understand why it is important to disclose full information when they apply for a policy. The guides also demonstrate the ‘more than just a cheque’ benefits from LV=, which include the Extra Care claim support service.

Also detailed in the guides are examples of claims that LV= has paid out during 2009, bringing to life actual customer scenarios and showing the benefits they are now receiving from their LV= protection policies.

Some examples of Income Protection claims paid in 2009:

Age at claim

Gender

Occupation

Cause of claim

When we started paying the claim

Current Monthly benefit

Total amount paid so far

27

F

Nurse

Back pain

26/03/1987

£1,052

£287,196

35

M

Hairdresser

Multiple Sclerosis

15/09/1996

£926

£147,234

38

F

Accountant

Depression

16/08/2002

£1,520

£133,760

40

M

General Manager

Brain tumour

11/04/1990

£2,881

£679,916

41

F

Solicitor

Post viral fatigue syndrome

13/09/2004

£3,063

£192,969

45

F

Training consultant

Stroke

02/04/2003

£1,599

£127,920

45

M

Vet

Asthma

02/07/2001

£2,212

£223,412

46

F

Bank Official

Whiplash

18/07/1998

£541

£74,117

50

M

Plasterer

Painful wrist with reduced movement

15/02/2003

£813

£66,666

52

M

Account Manager

Leg injury

13/05/2002

£1,852

£168,532

Some examples of Critical Illness claims paid in 2009:

Age

Gender

Cause

Amount

34

F

Multiple Sclerosis

£105,000

42

M

Brain Tumour

£71,475

44

F

Heart Attack

£85,896

52

M

Parkinson's Disease

£26,557

46

F

Breast Cancer

£111,679

65

M

Prostate Cancer

£127,588

42

F

Malignant Melanoma

£73,630

48

M

Stroke

£117,287

For further information and a copy of the 2009 Critical Illness and Income Protection Claims guides, advisers can visit LV.com/adviser


LV=
LV= is a registered trademark of Liverpool Victoria Friendly Society Limited (LVFS) and a trading style of the Liverpool Victoria group of companies.

LV= employs more than 3,800 people, serves over 3.8m customers and members, and manages around £7.7bn on their behalf. We are also the UK’s largest friendly society and a leading mutual financial services provider.

Liverpool Victoria Friendly Society Limited (LVFS) is authorised and regulated by the Financial Services Authority, register number. 110035. LVFS is a member of the ABI, AMI, AFS and ILAG. Registered address: County Gates, Bournemouth BH1 2NF.