Monday, November 4, 2013

PMI providers and claims stats

I was recently reading an article on the subject of whether private medical insurance providers should publish their stats for declined claims.

It's an interesting question - and in this age of big data and openness, on the face of it this seems like a decent enough idea.

According to the article, there's only one provider of PMI who currently makes these figures available - although it points out that declined stats for other areas of insurance such as protection, it's commonplace to do so.

It's an interesting area - and publishing more information on declinatures could conceivably help drive sales - especially when you look at some of the various reasons that claims don't make it. In 2012, UP reported that for the year prior, nearly a half (46%) of instances where a claim was turned down, this was due to the claim paperwork not being completed.

Why could this be a sales driver? Well one of the reasons we take out PMI is the peace of mind factor. And it's reassuring to know that claims decline instances are generally down to very simple reasons such as incomplete paperwork, as well as things like making claims for things that weren't included on the policy.

However, it's this peace of mind thing that's important - and as one broker points out - declined claims in PMI are actually pretty rare, since if the policy has been sold to the customer correctly they'll know what they are covered for.