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Catch up with the latest press releases from LV=

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LV= announces rise in critical illness and income protection payouts in 2010

Press release: 22/02/2011

Protection specialist LV= has today published its 2010 protection claims record, which shows an increase in claims paid on both critical illness and income protection policies. 93.5% of all critical illness claims, and 92% of income protection claims were paid in 2010, both up from 90% of claims paid in 2009.

The amount LV= paid in claims also increased in 2010, paying over £9m in critical illness claims (£7.9m in 2009), and more than £12m in income protection claims (£11.9m in 2009). Over the years, LV= has maintained a consistent track record of paying protection claims with a steady upward trend in the number of claims accepted. 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 and improving claims payment illustrates our firm commitment to support people in their time of need, and to limit the risk of any concern at the point of applying for a policy. This success is in part down to the investment in our tele-interviewing service, intelligent underwriting, and exploring the reasons for non-disclosure rejections in past years and putting measures in place to reduce them.

"When people make a claim on a protection policy, it is often at an extremely difficult time 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 caring 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 to a minimum."

Matt Morris, senior policy adviser at protection intermediary LifeSearch, comments: "These are excellent paid claims figures from LV=. It is particularly pleasing to see the income protection stats included as not every insurer publishes these figures, although they should do for the sake of transparency in the eyes of the consumer."

LV= has produced separate guides detailing its income protection and critical illness claims performance for 2010. 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 LV= has paid out during 2010, bringing to life actual customer scenarios and showing the benefits they are now receiving from their LV= protection policies.

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

Critical illness 2010

Critical illness 2009

Income protection 2010

Income protection 2009

Total amount of claims paid out

£9,015,813

£7,902,487

£12,000,607

£11,909,585

Average benefit

£74,511

£72,500

£15,596 annually

£11,740 annually

Average length of claim per policy

n/a

n/a

7 years

8 years

Average length of female claimant at claim

46

46

44

44

Average age of male claimant at claim

49

49

47

46

Total claims paid

93.5%

90%

91.6%

90%

Declined claims - non-disclosure

2.9%

3%

2.7%

3%

Declined claims - not meeting claim definition

3.6%

7%

5.7%

7%

Total declined claims

6.5%

10%

8.4%

10%


Examples of critical illness claims paid by LV= in 2010

Critical illness diagnosis

Gender

Total benefit paid

Age

Multiple sclerosis

Female

£500,000

33

Brain tumour

Male

£140,000

35

Kidney failure

Male

£100,000

38

Triple coronary artery bypass graft

Male

£111,665

43

Amputation of right leg

Male

£50,000

45

Ovarian cancer

Female

£51,838

48

Stomach cancer

Male

£70,521

53

Heart attack

Female

£35,998

54

Stroke

Male

£365,394

59

Bowel cancer

Female

£86,144

61


Examples of income protection claims LV= paid in 2010:

Age at claim

Gender

Occupation

Cause of claim

When we started paying the claim

Total amount paid so far

34

Male

Co Director

Multiple sclerosis

Jan 1986

£1,446,562

39

Female

Bank clerk

ME

Mar 1991

£476,133

41

Female

Solicitor

Depression

June 1990

£471,582

42

Female

Supermarket manager

Back pain

Feb 2009

£13,508

47

Male

Chiropractor

Tendonitis both wrists

Dec 2000

£191,280

48

Male

Estate agent

Heart attack

Aug 1997

£754,560

52

Male

Farmer

Lower back pain

Dec 1998

£375,264

52

Female

Health visitor

Alzheimer's

Feb 2005

£67,270

56

Male

Project supervisor

Stroke

Oct 2006

£81,800

58

Male

Veterinary surgeon

Broker fibula / tibia

May 2008

£13,423

For more information, go to www.lv.com



About 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.