The Association of British Insurers is setting up a new claims committee which aims to tackle the problem of declined claims in the protection industry and boost consumer confidence.
The committee will be chaired by Bernie Hickman, managing director of protection at Legal & General, and will include representatives from other insurers, as well as re-insurers.
Hickman says it was felt more focus was needed on treating customers fairly at the claims stage for protection products, particularly as the issue of declined claims has come under the spotlight recently from the FSA and the Law Commission.
The overall aim of the committee will be to boost consumer confidence in the protection industry by ensuring firms are consistent in treating their customers fairly at the claims stage.
Hickman says: “I would like to see the committee looking at the ABI’s claims flowchart to check it is fit for purpose, trying to ensure consistency within the industry on how to treat customers fairly at the claims stage, and promoting best practice.”
The committee intends to have its first meeting towards the end of April.
Mark Locke, spokesperson for Aegon Scottish Equitable, says: “In theory the committee sounds like an excellent initiative. Anything which helps educate consumers and tackle the issue of mistrust and misinformation has to be welcomed.”
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