This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Drewberry Insurance: Workers Estimate Life Insurers Only Payout 50% Of Claims

LONDON, February 13, 2013 /PRNewswire/ --

In their recent Health & Protection Survey, Drewberry Insurance finds that workers mistakenly believe that the UK's leading life insurers only payout around 50% of all claims made, which significantly underestimates the true payout rate of approximately 98% of claims.

Life insurance is an extremely important aspect of family financial planning but it is often argued by industry experts that the take-up rate is well below an optimal level, leading to a significant personal protection gap in the UK.

One explanation frequently proposed for this low take-up rate is that consumers are sceptical on insurers' willingness to pay valid claims.

A sample of 2,000 workers were asked to estimate what they thought the payout rate was for the UK's leading life insurers. The sample estimated the payout rate to be only 50% of all claims made, which would support the argument that consumers are distrustful of life insurers.

Life Insurance Payout Rate 96% Higher Than Workers Expected

In a sample of leading life insurers the actual payout rate in 2011 was closer to 98% of all claims made. [ 1 ] This means that the actual payout rate for life insurance is about 96% higher than what consumers think it is.

Tom Conner, Head of Protection at Drewberry Insurance, says, " It is often the case that clients are worried that insurers have a bad reputation for paying claims but these findings are far more concerning than I expected.

" A considerable amount of work needs to be done to inform and reassure the general public that life insurance has an excellent payout rate    with all valid claims being paid, which should help to build confidence not only in life insurance as a product but also in the insurance industry as a whole."

Mortality Risk 7x Higher Than Workers Expected

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,723.27 +93.00 0.53%
S&P 500 2,102.65 +9.40 0.45%
NASDAQ 5,093.7970 +4.5910 0.09%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs