The problem with claims

Even before that hurdle is reached there are lots of people who call their insurer and find that they cannot make a claim – for reasons ranging from a complete mistake (thinking their house and contents cover is with a life insurer) to just optimism (hoping an old contract long-since lapsed is still in force).

We have already seen more activism on the part of news media – they seem more eager than at any time in the past to report on declined claims.

They also seem less inclined to accept an insurer’s version of events.

In the UK there was a particularly rough time given to the insurers over critical illness claims in the early 2000s which prompted a number of changes – from standardised policy wordings to tele-underwriting. The rate of declined claims dropped considerably (from more than 25% in 2004 to less than 6% in 2007) and yet still poor coverage persists.