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LV= issues half year critical illness and income protection claims stats

Press release: 09/08/2011

Protection specialist LV= today releases its Critical Illness (CI) and Income Protection (IP) claims stats for the 12 months to June 2011. The claims records show that LV= paid out 93% of CI and IP claims. Just 1% of IP claims and 3% of CI claims were rejected as a result of non disclosure. A total of nearly £9 million was paid out in CI claims, and over £12 million in IP claims.


The June 2011 claims data reveals:

  • The average age of an IP claimant is 44 years old

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

  • Mental disorder is the most common reason for an IP claim (30%)

  • Cancer is the most common reason for a CI claim (58%)

  • The average annual benefit for an IP claim is £14,389, paying out for an average of just over seven years


LV= is one of only a few providers to publish its income protection claims data.

Mark Jones, LV= head of protection , said: "Our consistently high percentage of paid claims illustrates our firm commitment to supporting people in difficult times, and through processes such as our tele-interviewing service and intelligent underwriting, we continue to see a very low number of claims declined for non-disclosure.

"We are also proud to be one of only a few providers publishing IP claims data. We appreciate that when people make a claim on a protection policy they are likely to be in distress, be it financial or emotional. We publish both our CI and IP claim statistics so that advisers and consumers are aware of why claims can be rejected in order to keep declined claims to a minimum."

"While not directly comparable with IP and CI claims, data shows that under the Government's new employment and support allowance (replacing incapacity benefit), 93% of applications have not been successful.* Regardless of whether a number of these claims will eventually be overturned under appeal, this sends a clear message that the Government doesn't want and can't afford for people to rely on the state. People must make their own provisions for their financial future, and seek professional advice on the best way of doing so."

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

Critical illness 20111

Critical illness 20102

Income protection 20113

Income protection 20104

Total amount of claims paid out

£8,725,893

£9,015,813

12,029,463

£12,000,607

Average annual benefit

n/a

n/a

£14,389

£15,596

Average payout

£73,948

£74,511

n/a

n/a

Average length of claim per policy

n/a

n/a

7.2 years

7 years

Average age of female at claim

45

46

42

44

Average age of male at claim

49

49

46

47

Total claims paid

93%

93.5%

93%

91.6%

Declined claims - non-disclosure

3%

2.9%

1%

2.7%

Declined claims – not meeting claim definition

4%

3.6%

6%

5.7%

Total declined claims

7%

6.5%

7%

8.4%



Reasons for claims being made:

Income protection

2011

2010

2009

Mental Disorders

30%

30%

29%

Musculo-skeletal Disorders

19%

20%

20%

Cancer

12%

11%

11%

Circulatory Systems

10%

10%

11%

Disorders of the nervous system

9%

9%

9%

Road Traffic Accident

3%

3%

4%

Accidents

2%

2%

3%

Other

14%

14%

12%

Critical illness

2011

2010

2009

Cancer

58%

63%

62%

Heart attack

15%

12%

14%

Stroke

7%

5%

5%

Permanent Total Disability

6%

5%

3%

Multiple Sclerosis

5%

4%

2%

Heart/ Artery related conditions

4%

7%

9%

Arthritis/ Other diseases of musculoskeletal system Arthritis

1%

-

-

Other

5%

4%

7%


Notes

* Source: Department for Work and Pensions
1 2011 critical illness figures from July 2010 - June 2011
2 2010 critical illness figures from January 2010 - December 2010
3 2011 income protection figures from July 2010 - June 2011
4 2010 income protection figures from January 2010 - December 2010



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 around 4,000 people, serves around four million customers and members, and manages around £7.9bn (as at 30 September 2010) on their behalf. We are also the UK's largest friendly society and a leading mutual financial services provider.

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. www.LV.com.