The moment of truth for any insurance product is at point of claim.

Insurers have been publishing claims statistics for almost two decades now, highlighting the high rates of claims paid for protection policies to help improve consumer trust in these products.

However, paying the money is just one element of a successful claims because the actual claims experience is also important.

How easy was it to make a claim? Was the right decision made first time? How long did it take? And for advisers who want to help clients with claims, are insurers working alongside advisers to improve outcomes?

Most importantly, claimants will be coping with illness, injury or bereavement and need a simple, efficient and caring claims experience.

CONSUMER FOCUS

The Protection Distributors Group (PDG) is an organisation made up of protection-focussed adviser firms whose objective is to improve outcomes for consumers.

Our Claims Charter was established in 2018 to highlight insurer best practice and raise standards for claimants.

It was set up with the following criteria:

• Dedicated Claims Team, with a phone-based process for claimants to submit and manage their claim, supported by digital documentation. Paperwork only used where there are no digital alternatives possible or where claimant requests.
• No potential claimant can be turned away by anyone not on the Claims Team.
• Claimants to have named point of contact, with regular updates at least every two weeks, unless otherwise agreed. Queries to be responded to by end of next working day.
• Intermediaries are notified of all claims when made, without the customer being asked to opt in. Opt out options should be avoided whenever possible, but if the customer explicitly asks for their intermediary not be informed their wish must be adhered to. This will ensure records can be updated and no potential distress caused to clients and families through the intermediary not knowing about a claim.
• Pro-actively offers the PDG Funeral Payment Pledge and/or advances payments to speed up life cover claims where there is no trust in place, or where other factors could delay payment being made.
• Once a claim is approved, money is to be paid to the claimant within 72 hours (ignoring external factors out of insurer control such as probate), excluding income protection claims which should be paid at the earliest available payment date.

In 2018, around half of insurers met the criteria, and over the next few years the PDG worked with the remainder to get to a point where nearly all achieved Charter status.

POST-COVID PICTURE

Following the pandemic, we saw the time taken to assess and pay claims become longer, creating additional worry and causing some claimants financial difficulties.

We therefore extended the criteria to include an additional requirement that claims forms should be assessed within three working days and medical evidence within five working days.

Soon after we did this, the FCA themselves raised concerns about the time taken to pay claims so our approach was further validated.

Last year only eight insurers achieved charter status. This was disappointing for both us and those insurers who lost their accreditation, but it reflected the issues concerning the time to pay claims.

Since then, we were in close touch with insurers who missed it, and they communicated with us what they were doing to increase their investment in their claims journeys, review processes and boost resource.

2025

We are therefore delighted that this year, 12 insurers achieved charter status (Beagle Street, Cirencester Friendly, The Exeter, Holloway Friendly, Guardian, HSBC Life, Legal & General, LV=, National Friendly, Royal London, Scottish Widows and Shepherds Friendly) with two more incredibly close.

We know that all insurers do fantastic work in supporting claimants, but we feelpaying claims quickly is an important requirement, particularly for Income Protection claimants.

We are therefore proud of how the Claims Charter has helped to raise standards, and we will review and evolve its objectives to ensure it continues to meet the needs of claimants.

Emma Thomson is a vice-chair of the PDG and a freelance protection consultant