claims insights - brokers ireland · claims insights gender • 64% of claims were male. age • 57...
TRANSCRIPT
CLAIMS INSIGHTS
COLETTE HOUTONRoyal London Underwriting and Claims lead
WHAT’S ONTHE AGENDA
2
1. Death Claims
2. Specified Serious Illness Claims
3. Terminal Illness Claims
4. Permanent Health Claims
5. Claims Insights Overview
Claims Insights
CLAIMS INSIGHTS
Gender
• 64% of claims were male.
Age
• 57 was our average age.
• 34 was the age of the youngest.
• 79 was our oldest.
Sum Assured
• €852,000 was our largest claim.
• €832,000 was our second largest claim.
• €148,000 was our average claim pay out.
DEATH CLAIMS – DEEP DIVE
3
Royal London Death Claims 2017
CLAIMS INSIGHTS
Causes
• 53% Cancer
• 16% Heart
• 7% Suicide
Time in Force
• 9 years – Average time in force.
• 41% less than 10 years old.
DEATH CLAIMS – DEEP DIVE
4
Royal London Death Claims 2017
CLAIMS JOURNEY - NEEDS AWARENESSHURDLE: “IT’S NEVER GOING TO HAPPEN TO ME”
5
Causes by age:
Causes of death classified by age-groups, 2017
Some Early Claims…
• Claim A
Mortgage Protection policy
39 years old
Admin job
Diabetic - fully underwritten 2016
Rating of 300%
Diabetic coma within 18 months
No medical evidence at claim stage
Paid
6
DEATH CLAIMS – DEEP DIVECLAIMS INSIGHTS
Royal London Death Claims 2017
Some Early Claims…
• Claim B
Term Assurance policy
65 years old
In force 9 months
Fully underwritten
Rating of 50% for respiratory
Cause of death – stomach cancer
Paid
DEATH CLAIMS – DEEP DIVE
7
CLAIMS INSIGHTS
Royal London Death Claims 2017
CLAIMS INSIGHTS
Some Young Lives…
• Claim A
Mortgage Protection policy
34 years old, female
11 years in force
Clean application
Cause of death – breast cancer
No medical evidence at claims stage
Paid
DEATH CLAIMS – DEEP DIVE
8
Royal London Death Claims 2017
CLAIMS INSIGHTS
Some Young Lives…
• Claim B
Mortgage Protection policy
35 years old, female
4 years in force
Clean application
Cause of death – cervical cancer
No medical evidence at claims stage
Paid
DEATH CLAIMS – DEEP DIVE
9
Royal London Death Claims 2017
CLAIMS INSIGHTS
Overview
• Death claims are paid – 97%* in total paid by the Royal London Group in 2017.
• Death claims are paid with a minimum of evidence.
• Youth does not prevent death.
• Cancer is the main cause of death claims.
• Females are also having heart attacks.
• Non-smokers noted for lung cancer and heart attack claims.
However
• Public don’t know about claims payments.
• 22% of consumers think just 71-80% of claims are paid out.
• This compares to only 7% who think that 91-100% of claims are paid out.
*Group protection figures from Royal London UK Intermediary protection business and Royal London Ireland claims paid (01
January 2017–31 December 2017). Overview source: Royal London analysis. ‘However’ source: PacificRe Customer Research
2018
DEATH CLAIMS – DEEP DIVE
10
CLAIMS INSIGHTS
Gender
• 51% of claims were female.
Age
• 47 was the average age.
• 28 was the youngest adult age.
• 63 was the oldest age.
Sum Assured
• €292,000 was our largest claim paid.
• €218,000 was our 2nd largest claim paid.
• €79,000 was our average pay out.
Time in Force
• 3 years – average time in force.
• 93% - less than 10 years old.
SSI CLAIMS – DEEP DIVE
11
Royal London SSI Claims 2017
CLAIMS INSIGHTSSSI CLAIMS – DEEP DIVE
12
Cause of Specified Serious Illness Claims
Cancer
MS
Heart
Rheumatoid Arthritis
Benign BrainTumour
CLAIMS INSIGHTS
Early claims for young clients…
• Claim Example 1
Mortgage Protection policy
Male 28 years old
Clean application May 2016
SSI claim paid May 2017
Cause: Testicular Cancer
• Claim Example 2
Mortgage Protection policy
Female 33 years old
Clean application May 2015
SSI claim paid April 2017
Cause: Hodgkin's Lymphoma
SSI CLAIMS – DEEP DIVE
13
Royal London SSI Claims 2017
Other Causes…
• Example claim: Heart Attack
Mortgage Protection policy
Male 42 years old
Clean application March 2012
SSI claim paid October 2017
Cause: Heart Attack
NON SMOKER
NO RISK FACTORS
SSI CLAIMS – DEEP DIVE
14
CLAIMS INSIGHTS
Royal London SSI Claims 2017
Other Causes: MS
• All claims paid to females.
• All below 45 years old.
• All in force less than 3 years.
• Example Claim:
Term Assurance policy
Female aged 35
Clean application January 2016
Cause: MS diagnosed June 2017
SSI claim paid August 2017
15
SSI CLAIMS – DEEP DIVECLAIMS INSIGHTS
Royal London SSI Claims 2017
Other Causes: Rheumatoid Arthritis
• Claims are paid.
• Not eligible under Loss of Independent Existence.
• Example Claim:
Term Assurance policy
Male aged 44
Clean application October 2013
Cause: Rheumatoid Arthritissymptoms 2015 – in full remission, doing well.
SSI claim paid May 2017
16
SSI CLAIMS – DEEP DIVECLAIMS INSIGHTS
Royal London SSI Claims 2017
• 100% of claims were male.
• Very few claims.
• Example: Large Terminal Illness claim 2017
Mortgage Protection policy
Male aged 49
Clean application July 2012
Cause: Lung Cancer (Non-Smoker)
Sum Assured: €1.9m
No medical evidence at claim stage
Admitted within 24 hours
TERMINAL ILLNESS CLAIMS – DEEP DIVE
17
CLAIMS INSIGHTS
Royal London Ireland Terminal Illness Claims 2017
CLAIMS INSIGHTS
• Example Terminal Illness claim 2017
Mortgage Protection policy
Male aged 62
Clean application June 2015
Cause: Liver Cancer
SSI claim initially
Paid out also Terminal Illness
18
TERMINAL ILLNESS CLAIMS – DEEP DIVE
Royal London Ireland Terminal Illness Claims 2017
Examples: Income Protection Claims 2017
1. Fractured Back
2. Shoulder Dislocation
3. Hernia
4. Arthritis
Not all paid
• Haemorrhoids
• unable to work 6+ months
• Back
• start March 2017
• 4 weeks deferred period
• long history of back pain and absence from work
• clean application
• claim November 2017 19
IP CLAIMS – DEEP DIVECLAIMS INSIGHTS
WATCHOUT FOR DISCLOSURE
.
20
CLAIMS ARE BEING PAID
Claims are being paid - unless there is significant non disclosure.
Royal London is in the business of paying claims.
Claims are seldom declined except for serious non-disclosure.
In 2017, the Royal London Group* paid:
99% of total protection claims 97% of life claims 91% of SSI claims
Protect yourselves and the customer
• Address misconceptions.
• Alert Royal London.
• Allow time.
• Give a second chance to consider.
*Group protection figures from Royal London UK Intermediary protection business and Royal London Ireland
claims paid (01 January 2017–31 December 2017).
New Underwriting Guide available…
CLAIMS INSIGHTS
• Claims are paid.
• Claims happen to young people too.
• Claims happen to non-smokers, and to those considered fit and strong.
• Children’s claims are getting more common.
• Terminal Illness – put their affairs in order.
• Claims more likely to be paid when product is the best product in market.
• Disclosure is important.
• Claims philosophy and service is key.
• Helping Hand.
21
OVERVIEW
Claims Insights
KEY CLAIMS INSIGHT
Supporting Services
• A friendly listening ear.
• Practical information.
• Emotional support.
• Available for customer and family (spouse/partner and children).
• Highly experienced nurses.
Examples
• Helping to cope with grief.
• Helping to cope with cancer.
• Cardiac rehabilitation support.
• Managing stress and depression.
• Coping with their new reality.
SERVICE IS KEY
22
Helping Hand
CLAIMS INSIGHTS
Claims payments -
Stop things from going from bad to worse.
Please continue to help protect our customers by selling Royal London protection plans.
Good news
“If you're reading this ... Congratulations, you're alive. If that's not something to smile about, then I don't know what is.”
Chad Sugg
23
QUESTIONS&ANSWERS
Royal London 47–49 St Stephen’s Green, Dublin 2
T: 01 429 3333 F: 01 662 5095 E: [email protected] royallondon.ie
The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority in the United Kingdom and is regulated by the Central Bank of Ireland for conduct of business rules. The Royal London Mutual Insurance Society Limited is registered in England and Wales, number
99064, at 55 Gracechurch Street, London EC3V 0RL and in Ireland, number 908341, at 47-49 St. Stephen’s Green, Dublin 2.
1468.1