- 95% of all Life Insurance claims paid
- 99% of personal lines motor claims paid, and over 99% of all commerce claims
- First time Zurich has announced Life and GI claims
On 31 October 2016, Zurich in the UK announced that more than £1 billion was paid out in claims during the first six months of the year.
We have been publishing the proportion of Life claims paid for some time, but this is the first time we’ve published this level of detail for General Insurance claims as well, and represents a belief that the industry can do more to increase its transparency.
Zurich’s UK Life business paid out 95% of all claims. This includes almost all Life claims between January and June (98%) and over 89% of Critical Illness claims. Where a small number of claims were declined, this was either because the customer’s condition did not meet the definition set out in the policy or because of non-disclosure of medical information
In General Insurance, the overwhelming majority of all claims were paid out by us, and 17 payments of over £1 million were made. The lowest proportion of claims paid came from personal lines home cover – where the amount paid was slightly over 91%. This is higher than the market average and the main reasons for claims being turned down were due to customers not understanding what is and is not covered before starting a claim.
Highlights of Zurich UK’s £1 billion claims paid in the first six months of 2016:
| General Insurance | Life |
| Received over 115,000 new claims across personal and commercial lines | Over 1,300 new claims received 95% of all claims paid |
| Paid 99% of personal lines motor claims | Received 1,345 new claims Just 72 were declined |
| 91% of personal lines property claims were paid. | Life – 98% paid · 854 families benefited from payments of more than £68.3 million · Average claim just under £50,000 · Largest single claim £2m · Claims were turned down because of non-disclose of medical information |
| Paid over 99% of claims from commercial customers (where roughly a quarter were motor, and the rest evenly split between property and casualty) | Critical Illness – 89% paid · Breast cancer is the most common cause of a Critical Illness claim (20%) · Heart attacks account for the second most common cause (17%) · Over £225,000 paid in claims for children · Average claim around £83,336 · Claims turned down because the definition of the illness was not met or non-disclosure of medical information |
| Income Protection – 87% paid · Mental Illness accounts for most Income Protection claims (23%) · This was followed by cancer (15%). Musculoskeletal complaints (excluding spinal) and spinal disorders accounted for 13% each. · Average monthly payments to customers were £1,460. |
Commenting on these figures, Zurich’s UK CEO Gary Shaughnessy said:
“There is often a misconception that insurers shy away from paying claims – but by publishing these numbers we are trying to lift the lid on the fact that the vast majority are paid. £1 billion is a huge number and it is fantastic that we are able to help our customers when they need us most – after all, that’s why we’re here”.
To find out more about how Zurich’s products could be right for your clients phone Patrick Mclaughlin , Zurich Business Account Manager for The Right Mortgage on 01793 406169 or visit www.zurichintermediary.co.uk
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