Insurers erroneously declined protection claims in only a tiny number of cases in the last two years, despite the public's negative perception of the industry, a study suggests.
The number of life and critical illness (CI) claims decisions referred to the Financial Ombudsman Service (FOS) in 2007 and 2008 found in favour of the consumer was just 90, the Reinsurance Group of America (RGA) report shows. This compares with a total claims figure of 56,000 over the same period, suggesting insurers get claims decisions 'wrong' in just 0.16% of cases. In total, insurers paid out £2bn in 2007 and 2008. "If you see anything to do with protection on [BBC] Watchdog, you'd think all insurers do is decline claims, rightly or wrongly," RGA business development manager Mick J...
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