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Catch up with the latest press releases from LV=

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LV= paid 95% of protection claims in 2011

Press release: 15/02/2012

Protection specialist LV= today releases claims statistics for its underwritten individual protection business in 2011. The claims records show that LV= paid out 95% of protection claims, including 91% of income protection (IP) claims, 88% of critical illness (CI) claims, and 100% of life assurance claims.

Fewer than 2% of IP claims and 3% of CI claims were rejected as a result of non-disclosure. In total, LV= paid out over £12 million in IP claims (up 3% on 2010), nearly £10 million in CI claims (up 7% on 2010), and more than £28 million was paid out in life assurance claims in 2011.

The 2011 claims data reveals:

  • The average age of an IP claimant is 45 years old

  • The average age of a CI claimant is 47 years old

  • Mental disorders were the most common reason for an IP claim (31%)

  • Cancer was the most common reason for a CI claim (61%)

  • The average annual benefit for an IP claim is £16,568, paying out for an average of just over seven years

  • The average CI claim was £70,098

Mark Jones, LV= Head of Protection, said: "We have made a number of improvements in recent years, for instance to our tele-interviewing and intelligent underwriting, which has helped keep claims being declined for non-disclosure to a minimum. We are firmly committed to paying every valid claim and believe that releasing this data helps give people a better understanding of when claims are met."

"LV= is proud to be the leading provider of IP in the advised market, and consistently achieve high levels of paid claims. We’ve set our sights on also putting our CI product at the top of the market in 2012. Since 2010 we’ve increased our presence in the CI market and we want to further accelerate this. We expect to announce the details of our new CI offering in the coming weeks."


LV= income protection and critical illness claims data in detail:

Claims paid January – December 2011

Income protection

Critical illness

Life assurance

Total amount of claims paid out

£12,351,458

£9,673,527

£28,161,838

Average annual benefit

£16,568

n/a

n/a

Average payout

n/a

£70,098

£65,189

Average length of claim per policy

7 years

n/a

n/a

Average age of female at claim

42

45

59

Average age of male at claim

46

50

60

Total claims paid

91%

88.1%

100%

Declined claims - non-disclosure

1.7%

3.1%

0%

Declined claims – not meeting claim definition

7.3%

8.8%

0%

Reasons for claims being made:

Income protection

Mental Disorders

31%

Musculo-skeletal Disorders

19%

Cancer

13%

Circulatory Systems

10%

Disorders of the nervous system

9%

Road Traffic Accident

3%

Accidents

3%

Respiratory

1%

Other

11%


Critical illness

Cancer

61%

Heart attack

11%

Stroke

8%

Multiple Sclerosis

6%

Permanent Total Disability

4%

Heart/ Artery related conditions

1%

Arthritis/ other diseases of musculoskeletal system arthritis

1%

Other

8%




About LV

LV= employs 5000 people and serves over five million customers with a range of financial products. We are the UK’s largest friendly society and a leading financial mutual.

When we started in 1843 our goal was to give financial security to more than just a privileged few and for many decades we were most commonly associated with providing a method of saving to people of modest means. Today we follow a similar purpose, helping people to protect and provide for the things they love, although on a much larger scale and through a wide range of financial services including insurance, investment and retirement products.

We offer our services direct to consumers, as well as through IFAs and brokers, and through strategic partnerships with organisations such as ASDA, Nationwide Building Society and a range of trades unions.

LVFS is authorised and regulated by the Financial Services Authority, register number 110035. LVFS is a member of the ABI, the AFM and ILAG. Registered address: County Gates, Bournemouth BH1 2NF.