ABI Figures 2023

Introduction:

Resolute Claims understands the disappointment and frustration that can accompany a rejected insurance claim. In this blog, we will delve into the different claim areas, including Life, Critical Illness, Income Protection, and Total Permanent Disability, and examine the trends from 2019 to 2022. We will explore the potential causes of claim rejections, highlight the number and financial impact of rejected claims, and shed light on how you and Resolute Claims can assist you in appealing these decisions. Let's explore the data provided by the Association of British Insurers (ABI) and speculate on the possible reasons behind the shifts in claim trends.

Life Insurance Claims: Examining the Factors Influencing Claims

Life insurance provides financial protection for loved ones in the event of a someone passes away. Analysing the data from 2019 to 2022, we observed a significant increase in the number of life insurance claims, ranging from 43,091 to 53,105. This trend may be attributed to several factors:

Increased awareness and importance of life insurance: The growing recognition of the importance of life insurance in safeguarding the financial future of dependents may have encouraged more individuals to secure coverage, resulting in a higher number of claims.
Economic and societal changes: Changes in economic conditions, such as rising costs of living and greater financial responsibilities, might have prompted individuals to prioritize life insurance, leading to an increase in policy ownership and subsequent claims.

Critical Illness Claims: Changing Landscape

Having a critical illness claim rejected has a huge impact on families during an already testing time. Critical Illness insurance offers financial support in the event of a policyholder's diagnosis with specified serious illnesses. Examining the data, we noticed fluctuating trends in critical illness claims, ranging from 18,016 to 19,218. Several factors could contribute to these shifts:

Evolving medical landscape: Advances in medical technology and diagnostic capabilities may have led to earlier detection and diagnosis of critical illnesses. As a result, more individuals are filing claims upon receiving their diagnoses.
Changing lifestyle and health patterns: Shifting lifestyle habits, including sedentary lifestyles, increased stress levels, and higher prevalence of certain medical conditions, might contribute to a rise in critical illness claims.

Income Protection Claims: Unravelling the Decline

Income Protection insurance provides coverage if policyholders are unable to work due to illness, injury, or disability. Analysing the data, we observed a decline in income protection claims, ranging from 22,542 to 27,892. Potential reasons for this decline include:

Pandemic-related impacts: The COVID-19 pandemic significantly disrupted the global workforce, resulting in layoffs, furloughs, and reduced working hours. These factors may have influenced the decrease in income protection claims as fewer individuals were actively working during this period.
Improved workplace safety measures: Advancements in workplace safety practices and regulations might have contributed to a reduction in work-related injuries and disabilities, consequently leading to fewer income protection claims.

Total Permanent Disability Claims: Deciphering the Trends

Total Permanent Disability insurance provides coverage for severe disabilities that prevent policyholders from working. Looking at the data, we noticed a decline in total permanent disability claims, ranging from 342 to 475. Potential factors contributing to this trend include:

Enhanced safety measures: Improved safety protocols and regulations in various industries have likely contributed to a decrease in severe disabilities, resulting in a decline in total permanent disability claims.
Focus on preventative health measures: Increasing emphasis on preventive health measures, such as early detection and intervention, may have resulted in a reduction in the number of severe disabilities and subsequent claims.

Appealing Rejected Claims: Taking Action with Resolute Claims

If your insurance claim has been unfairly rejected, Resolute Claims is here to support you. Our experienced team specializes in navigating the appeals process and fighting for your rights. We can help gather evidence, build a strong case, and guide you through the complexities of the appeals process.

While the exact reasons life insurance won't pay out can change from person to person, some possible factors include:

More Stringent Underwriting:
Insurance companies may have tightened their underwriting processes to minimize risk and prevent fraudulent claims. This increased scrutiny could lead to more claim denials if discrepancies or non-disclosed information is discovered during the review.

Improved Data and Technology:
Advancements in data analytics and technology have enhanced insurers' ability to identify inconsistencies and uncover potential fraud. This could contribute to an increased number of claims being denied due to misrepresentation or non-disclosure.

Increased Policyholder Awareness:
As policyholders become more aware of their rights and options, they may be more inclined to challenge claim denials. This could result in an apparent increase in rejected claims, as individuals seek assistance in appealing the decisions.

Complex Policy Wordings:
Life insurance policies can contain intricate language and exclusions that may be difficult for policyholders to fully comprehend. Lack of clarity or misunderstanding of policy terms could lead to unintended non-disclosure or misrepresentation, resulting in claim denials.

Conclusion: Empowering You to Seek Justice

Understanding the shifting trends in insurance claims, including Life, Critical Illness, Income Protection, and Total Permanent Disability, is essential in navigating the appeals process. While we speculate on potential factors influencing these trends, Resolute Claims remains committed to providing expert guidance and support in your claim appeals. If your claim has been rejected, take action today by contacting Resolute Claims to explore your options and protect your financial well-being.

Note: The statistics and speculations provided in this blog are based on data from the Association of British Insurers (ABI) and should be considered approximate.