handled with care - royal london group · time of claim average time plan in force before claim...

THIS IS FOR FINANCIAL ADVISER USE ONLY AND SHOULDN’T BE RELIED UPON BY ANY OTHER PERSON.

HANDLEDWITH CARE

Our 2018 claims statistics

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We take a personal approach to handling your client’s claim.We’re proud to have a strong claims track record. But we know that when your clients are going through a difficult time the experience they have is important too.

From a single point of contact who manages a claim from start to finish, to access to a dedicated nurse who can provide additional emotional and practical support, we make sure all claims are handled with care.

And we’re focused on making our claims service even better for your clients. That’s why we offer Free Cover to make sure they’re protected before they pay a penny in premiums and why we’re signed up to the Funeral Payment Pledge.

But that’s just the beginning. We’re investing in our claims experience and have a dedicated team continually looking at how we can be at our very best in a bad situation – making our claims process as easy, quick and personal as possible.

“I'd like to express my thanks to everyone involved in my recent claim. I work in the industry and the customer experience I've received is second to none. This commenced with the very knowledgeable and sympathetic individual I spoke to on the phone who answered all my questions, sent out the relevant documentation and got back to me very quickly whenever I left a message.I was updated during the process and the claim was settled efficiently – far exceeding my expectations.”Royal London customer (Critical Illness claim due to cancer, female, age 44), June 2018

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99% £506.7m 38,064Total claims paid in 2018 Total amount paid to customers

in 2018Claims paid to customers and families at a difficult time

Source – Royal London UK Protection business claims paid (1 January to 31 December 2018)

Free Cover so your clients are protected straightaway.Free Cover claims can pay out before a penny in premiums has been paid by your client. This can be useful if a customer is waiting for their plan to start while their mortgage is completing.

Funeral costs cover when it’s needed.When a loved one dies, families can face financial worries while they’re waiting for the estate to be distributed. It’s the last thing they want on their mind when they’re grieving for their loss and need to plan a funeral.

That’s why we’re signed up to the Funeral Payment Pledge. This means we’ll help families pay the funeral costs up to £10,000 on life cover claims if there’s no will or delays because of probate.

Care for your clients’ wellbeing.Helping Hand provides your clients with a tailored and personal support service. It’s available to them and their family (partner and children) from the day their plan starts, not just at claim – and they don’t need to pay anything extra to use it. Your client will be offered access to a dedicated nurse who’ll provide ongoing emotional and practical support. Their nurse can also arrange additional services, such as bereavement counselling or a second medical opinion, if that’s what your client needs.

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9 YEARS,2 MONTHS56

The average Term Life Cover payout in 2018

Term Life Cover claims paid in 2018 Paid out in Term Life Cover claims in 2018

Average age of customer at time of claim

Average time plan in force before claim

Claims paid (families and beneficiaries helped)

TERM LIFE COVERYour clients can choose how they would like a successful Term Life Cover claim to be paid. They might want a lump sum to pay off immediate debts, or they may prefer a regular income to help their families with ongoing expenses. They might even decide that a combination of the two would work best. Whatever they decide, Life Cover can support their loved ones if they die or become terminally ill.

Age Claims paid Total amount paid %

Under 40 years 51 £7,495,796 6%

40–49 years 179 £26,800,925 22%

50–59 years 292 £33,386,489 37%

60 and over 277 £22,215,501 35%

Claims paid by age

Source: 1 – Royal London UK protection business claims paid (1 January to 31 December 2018). 2 – Royal London UK intermediary protection business claims paid (1 January to 31 December 2018).

£102,860

95.2% £134m

1,303

1

2

2

2

22

1

1

1

Male – 66%

Female – 34%

5

The average Whole of Life payout in 2018

Whole of Life claims paid in 2018 Total paid out in Whole of Life claims in 2018

WHOLE OF LIFE COVEROur Whole of Life Plans can give your clients protection beyond the life of their mortgage, until they die. Whether they’re thinking about inheritance tax and want to leave money to their family, as a gift, or to pay for their funeral, our plans can help protect them and their loved ones.

99.9% £132.5m1

1

Claims paid (families and beneficiaries helped)34,3541

£3,857

1

The average Pegasus Whole of Life Plan payout in 2018


40–49 years 6 £654,570 3%

50–59 years 17 £2,251,991 8%

60 and over 179 £12,854,184 89%

Claims paid by age


74 Average age of customer at time of claim

2

2

22

15 YEARS, 10 MONTHS Average time plan in force

before claim

2

Male – 53%

Female – 47%

£78,023

6

5.9%

2.9%

2

11 YEARS,5 MONTHS

50

Female – 48%

CRITICAL ILLNESS COVERWith our comprehensive Critical Illness Cover your clients are covered for 67 conditions. We're committed to offering cover where it matters. That's why we focus on having some of the best definitions for the main reasons for claim – cancer, heart attack, stroke, children's critical illness and multiple sclerosis.

47 of our definitions pay the full amount of cover and we have 20 additional conditions, including 13 for early forms of cancer. These pay 25% of the amount of Critical Illness Cover, up to a maximum of £25,000.

Claims declined for not meeting the definition

Claims declined for misrepresentation

Average Critical Illness claim payout

Of Critical Illness claims paid in 2018

Of claims in 2018 were for just five definitions – cancer, heart attack, stroke, multiple sclerosis and children’s critical illness

Paid out in Critical Illness claims in 2018


Under 40 years 224 £24,058,117 14%

40–49 years 512 £66,733,219 33%

50–59 years 640 £66,046,450 41%

60 and over 190 £17,478,606 12%

Claims paid by age

£98,832

91.2%91%

£190.6m1

2

1

Please note these figures exclude Children's Critical Illness.

1

1

2

1


Claims paid1,928Average age of customer at time of claim (excluding Children's Critical Illness)

1

Average time plan in force before claim (excluding Children's Critical Illness)

2

Male – 52%

2

2

7

All claims Male Female

Cause of CI ClaimNumber

of claims Total amount paid % of totalNumber

of claims Total amount paid % of totalNumber

of claimsTotal

amount paid

Cancer 1,050 £119,317,377 40.6% 426 £51,342,484 59.4% 624 £67,974,892

Heart attack 174 £17,888,244 89.7% 156 £16,591,348 10.3% 18 £1,296,896

Stroke 125 £14,525,349 71.2% 89 £11,397,864 28.8% 36 £3,127,485

Multiple sclerosis 67 £8,684,595 38.8% 26 £3,356,735 61.2% 41 £5,327,860

Heart valve replacement or repair 27 £3,172,267 77.8% 21 £2,790,465 22.2% 6 £381,802

Coronary artery bypass 21 £2,515,319 90.5% 19 £2,441,886 9.5% 2 £73,434

Parkinson's disease 22 £2,210,506 77.3% 17 £1,636,710 22.7% 5 £573,796

Angioplasty 15 £529,504 100.0% 15 £529,504 0.0% 0 £0

Cardiomyopathy 8 £602,143 100.0% 8 £602,143 0.0% 0 £0

Motor neurone disease 7 £804,629 100.0% 7 £804,629 0.0% 0 £0

Alzheimer's disease 6 £547,812 83.3% 5 £447,812 16.7% 1 £100,000

Benign brain tumour 6 £387,736 50.0% 3 £120,000 50.0% 3 £267,736

Open heart surgery 6 £343,806 66.7% 4 £218,806 33.3% 2 £125,000

Aorta graft surgery 5 £586,068 100.0% 5 £586,068 0.0% 0 £0

Dementia 5 £253,536 60.0% 3 £179,778 40.0% 2 £73,758

Paralysis/Paraplegia 3 £217,113 100.0% 3 £217,113 0.0% 0 £0

Intensive care 3 £163,100 100.0% 3 £163,100 0.0% 0 £0

Traumatic brain injury 2 £275,000 50.0% 1 £25,000 50.0% 1 £250,000

Major organ transplant 2 £76,069 50.0% 1 £40,250 50.0% 1 £35,819

Ductal carcinoma in situ 2 £18,750 0.0% 0 £0 100.0% 2 £18,750

Creutzfeldt-Jakob disease 1 £323,951 0.0% 0 £0 100.0% 1 £323,951

Aplastic anaemia 1 £284,928 100.0% 1 £284,928 0.0% 0 £0

Coma 1 £156,474 0.0% 0 £0 100.0% 1 £156,474

Blindness 1 £155,834 100.0% 1 £155,834 0.0% 0 £0

Progressive supra nuclear palsy 1 £110,000 0.0% 0 £0 100.0% 1 £110,000

Cardiac arrest 1 £69,919 100.0% 1 £69,919 0.0% 0 £0

Bacterial meningitis 1 £50,000 100.0% 1 £50,000 0.0% 0 £0

Loss of independent existence 1 £33,649 0.0% 0 £0 100.0% 1 £33,649

Ectopic pregnancy 1 £5,000 0.0% 0 £0 100.0% 1 £5,000

Foetal death in utero 1 £5,000 0.0% 0 £0 100.0% 1 £5,000

TOTAL 1,566 £174,316,392 52.1% 816 £94,055,089 47.9% 750 £80,261,303

Source – Royal London UK intermediary protection business claims paid (1 January to 31 December 2018).

Causes of critical illness claims

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All claims Male Female

CancersNumber of

claimsTotal amount

paid % of totalNumber of

claimsTotal amount

paid % of totalNumber of

claimsTotal

amount paid

Breast 371 £41,940,331 0.54% 2 £313,856 99.46% 369 £41,626,475

Bowel/Colo-rectal 92 £9,092,941 54.35% 50 £4,635,792 45.65% 42 £4,457,149

Prostate 90 £10,714,469 100.00% 90 £10,714,469 0.00% 0 £0

Skin 66 £8,487,738 59.09% 39 £5,823,581 40.91% 27 £2,664,158

Brain 42 £5,814,757 57.14% 24 £4,017,383 42.86% 18 £1,797,375

Lymphoma 41 £4,891,693 60.98% 25 £3,367,856 39.02% 16 £1,523,837

Leukaemia 33 £3,943,663 66.67% 22 £2,265,798 33.33% 11 £1,677,865

Testicle 29 £3,591,921 100.00% 29 £3,591,921 0.00% 0 £0

Thyroid 26 £4,168,900 34.62% 9 £991,273 65.38% 17 £3,177,627

Other 24 £3,347,590 66.67% 16 £1,781,243 33.33% 8 £1,566,347

Kidney 24 £1,944,500 66.67% 16 £1,106,916 33.33% 8 £837,584

Lung 24 £1,937,121 45.83% 11 £905,912 54.17% 13 £1,031,209

Ovary 23 £1,657,588 0.00% 0 £0 100.00% 23 £1,657,588

Endometrium 12 £1,304,749 0.00% 0 £0 100.00% 12 £1,304,749

Cervix 12 £1,032,515 0.00% 0 £0 100.00% 12 £1,032,515

Bladder 12 £1,281,074 66.67% 8 £1,156,497 33.33% 4 £124,578

Myeloma 12 £2,289,057 66.67% 8 £1,052,452 33.33% 4 £451,595

Oesophagus 11 £1,053,649 72.73% 8 £920,539 27.27% 3 £133,109

Tonsils 11 £902,223 90.91% 10 £871,522 9.09% 1 £30,701

Pancreas 9 £837,636 55.56% 5 £555,994 44.44% 4 £281,642

Appendix 9 £1,595,808 55.56% 5 £1,075,097 44.44% 4 £520,711

Endocrine system 8 £663,227 50.00% 4 £433,409 50.00% 4 £229,818

Soft tissue 8 £1,468,570 75.00% 6 £1,273,177 25.00% 2 £195,392

Throat 8 £621,420 62.50% 5 £466,414 37.50% 3 £155,006

Tongue 7 £813,096 85.71% 6 £628,142 14.29% 1 £184,954

Uterus 7 £596,023 0.00% 0 £0 100.00% 7 £596,023

Liver 5 £438,435 60.00% 3 £311,927 40.00% 2 £126,508

Bile Duct 5 £278,544 80.00% 4 £178,478 20.00% 1 £100,066

Eye 4 £904,448 75.00% 3 £818,732 25.00% 1 £85,716

Stomach 4 £243,440 50.00% 2 £100,000 50.00% 2 £143,440

Parotid gland 4 £310,033 100.00% 4 £310,033 0.00% 0 £0

Spine 3 £184,300 66.67% 2 £120,693 33.33% 1 £63,607

Mouth 3 £154,352 100.00% 3 £154,352 0.00% 0 £0

Bone 2 £117,500 0.00% 0 £0 100.00% 2 £117,500

Larynx 1 £220,000 100.00% 1 £220,000 0.00% 0 £0

Neuroendocrine tumour 1 £125,085 100.00% 1 £125,085 0.00% 0 £0

Thymus 1 £98,089 100.00% 1 £98,089 0.00% 0 £0

Intestine 1 £89,946 100.00% 1 £89,946 0.00% 0 £0

Spleen 1 £61,325 100.00% 1 £61,325 0.00% 0 £0

Vagina 1 £40,049 0.00% 0 £0 100.00% 1 £40,049

Peritoneum 1 £40,000 0.00% 0 £0 100.00% 1 £40,000

Vocal cords 1 £12,808 100.00% 1 £12,808 0.00% 0 £0

Neck 1 £6,763 100.00% 1 £6,763 0.00% 0 £0

TOTAL 1,050 £119,317,377 40.57% 426 £51,342,484 59.43% 624 £67,974,892

Type of cancer

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5 YEARS, 3 MONTHS

7

Paid out in Children’s Critical Illness claims in 2018 Average payout

Average age of child at time of claim

Average time plan in force before claim Claims paid

of claims were for cancer

CHILDREN’S CRITICAL ILLNESS COVERNo one likes to think of their child becoming critically ill, but it’s an unfortunate reality. The money from a Children’s Critical Illness claim could help provide the best care and support for a sick child and allow their parents the financial freedom to change their working patterns so they can look after them.

When your clients take out our Critical Illness Cover, they can choose to include either Standard or Enhanced Children’s Critical Illness Cover. We pay out 50% of the cover amount on successful claims, up to a maximum of £50,000. And we include any legally adopted children and financially dependent children up to the age of 21 (whether born before or after the start date of the plan).

Source – Royal London UK intermediary protection business claims paid (1 January to 31 December 2018)

£1.64m £23,387

70

56%

Male – 53%Female – 47%

Cancer – 56%

Open heart surgery – 14%

Total permanent disability – 6%

Deafness – 4%

Major organ transplant – 4% Benign brain tumour – 3% Blindness – 3%

Encephalitis – 3%

Stroke – 3%

Other – 4%

Reasons for claim 2018

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INCOME PROTECTION

Top reasons for claim for 2018

If your client is unable to work because of a long term illness or injury they’ll still have a mortgage or rent to pay, as well as regular bills. Income Protection can provide your client with an income, giving them one less thing to worry about while they focus on getting better and back to work.

Musculo-skeletal – 34%

Cancer – 20%

Mental health – 13%

Heart attack – 2%

Stroke – 1%

89.6% £5.2m

72.2%

Of Income Protection claims paid (includes those already being paid on 1 January 2018)

Paid in Income Protection claims (includes those already being paid on 1 January 2018)

Of Income Protection claims paid (new claims admitted in 2018)

Paid in Income Protection claims (new claims admitted in 2018)

Average amount paid to customers (new claims admitted in 2018)

£930,544 £5,965

Average age of customer at time of claim (new claims admitted in 2018)

Male – 59%Female – 41%

2

1 1

22

1 1 1

2

13.9% 13.9%

Of claims declined due to misrepresentation

Of claims declined for not meeting the definition

1 1


Alzheimer’s disease – 1%

Dementia – 1%

Pneumonia – 1%

Chronic fatigue – 1%

Other – 26%

9 YEARS, 11 MONTHS

Average length of Income Protection claim (includes those already being paid on 1 January 2018))

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Fracture cover claimsIn 2018 we started paying out on fracture cover claims.

Paid in Fracture Cover claims in 2018

£29,000

1

Source – Royal London UK intermediary protection business claims paid (1 January 2018 to 31 December 2018)

Shoulder blade – £1,5007%

Vertebra – £2,0007%

Ankle – £8,000 29%

Hand – £6,00029%

Arm – £2,500 7%

Upper leg – £4,0007%

Lower leg – £5,00014%

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Royal London customer (motor neurone disease, male, age 71), May 2018

“I would just like to say that you have been the most amazing company to deal with especially in your prompt replies and your sensitivity in dealing with my claim.”

FREE COVERIf your clients apply for a plan with us and it doesn’t start right away, we want to make sure they’re protected in the meantime. That’s why we offer Free Cover. It’s temporary cover, the same type as your client has applied for and it starts as soon as we receive their completed application form. So, they’re covered even before their plan has officially started.

And our Free Cover really does make a difference. We paid out over £625,000 in claims in 2018 to customers who sadly had to make a claim before their plans had started.

The shortest length of time between us receiving the application and the clients making a claim was 4 days.


Paid in Free Cover claims in 2018 Shortest length of time between application and claim

£625,000 4 days

13

8 months

Second opinion – 5%

Private Consultation - 8%

Counselling - 42%

Relaxation massage - 6%

Physiotherapy - 17%

Other - 22%

HELPING HAND During difficult times in your client’s life – like when they’re seriously ill – they might not know where to turn to for help. Dealing with the unknown can be daunting. Our Helping Hand service gives your clients access to a dedicated nurse who’ll provide tailored and personal support whenever they need it – for as long as they need it.

Whether they need someone to talk to or access to specialist services, your client will always speak to the same person who can provide a personal support plan which complements NHS services and gives continuity of care.

Helping Hand is available from the day your client’s plan starts. They won’t need to pay anything extra to use it and their family (partner and children) can use it too.

Life Cover

Losing a loved one is a devastating and very personal experience. Some people struggle to cope with their grief, which may lead to problems later on. Helping Hand offers long–term support, from access to a dedicated nurse to bereavement counselling for your client’s family if they need it.

During this emotional time, there will also be practical issues that need taken care of. To help with this, we’ll give your family access to an independent legal helpline to discuss any questions they may have around wills or probate.

Average time a customer or their

family are in touch with their nurse

“It’s been invaluable having an impartial person to talk things through with and having counselling arranged not just for me, but my daughter too. Sue, my nurse, is a great listener and has really helped me through the last year.”Royal London customer, RedArc patient survey 2018

Services used by customers

Counselling – 42%

Physiotherapy – 17%

Private consultation – 8%

Relaxation massage – 6%

Second opinion – 5%

Other – 22%

Source: RedArc Royal London schemes review (1 January – 31 December 2018)

customers or their family used the service in 2018

1,223

Reasons customers use the service

Cardiac

Other

Mental Health

Orthopaedic

Bereavement

Cancer

Cancer – 28%

Bereavement – 16%

Orthopaedic – 14%

Mental health – 10%

Cardiac – 6%

Other – 26%

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These case studies are based on real life customer experiences but names have been changed to protect their identities.

Helping Hand is a package of support services, provided by third parties that aren’t regulated by the Financial Conduct Authority. These services aren’t part of our terms and conditions, so can be amended or withdrawn at any time.

Critical Illness Cover

Being diagnosed with a critical illness such as cancer, or suffering from a heart attack or stroke, is traumatic and can affect everyone differently. Whether it’s finding ways to cope with facing an illness or support on the road to recovery, Helping Hand offers access to long–term support from a dedicated nurse.

Income Protection

If your client has been off work because of an illness or injury it can be hard to get back into the swing of things. Helping Hand can help them recover and get back to work. Helping Hand offers access to long–term support from a dedicated nurse who can help to manage conditions like stress and musculoskeletal pain through additional services like counselling, physiotherapy and complementary therapies.

Jade’s story

When Jade found herself off work with persistent cold and flu symptoms her doctor concluded that it wasn’t a cold but in fact extreme stress. Jade was signed off from work for a short period to get better. But when her health got worse and Jade needed more time off work, her employer felt they could no longer support her and ended her sick pay. Losing her income and worrying about how to pay her mortgage and bills, all added to Jade’s stress.

It was at this point Jade decided to make a claim on her Royal London Income Protection. Her plan not only helped her financially, but it also meant she had access to Royal London’s Helping Hand service at no extra cost.

Jade was then contacted by a dedicated nurse from RedArc, Zena, who explained that she could contact her whenever she needed to speak to someone about her mental health issues. She gave Jade different techniques to manage her stress and anxiety and also arranged a life coach who helped her focus on her future.

Thanks to her Income Protection plan and the dedicated nurse from Helping Hand, Jade is well on the road to recovery and has even found a new job.

Jenny’s storyWhen Jenny was diagnosed with cancer, she was devastated and worried about how her family would cope. Because of her significant surgery, she knew she had a long road to recovery.

As well as feeling anxious about her treatment, she was stressed about being off work.

Helping Hand offered Jenny a dedicated nurse who gave her advice on coping with the side effects of her treatment and recommended therapies to improve her strength. She also sent her information about her right to time off work.

Jenny felt reassured that when she needed to talk there would be someone to listen. Her husband also had a dedicated nurse to help ease his worries.

Helping Hand meant Jenny and her family had a constant source of support.

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HOW YOU CAN HELP US TO PAY MORE CLAIMSWe know that your clients have taken out cover to give both themselves and their families peace of mind. And so we aim to pay valid claims as quickly as possible and we always assess claims in a fair and consistent way. But there might be times when we can’t pay a claim because of misrepresentation or because it doesn’t meet our plan definition.

We're always looking for ways to minimise the risk of claims being declined. Whether it's improvements to the application process or the information we give to your clients, we know there's always more we can do.

You can run through the points in the checklist below and make sure your clients have cover in place that meets their needs.

YOUR CHECKLIST

Medical history – if your clients are unsure about a previous illness or medical condition, they might want to speak to their doctor before making an application.

Customer application – make sure that all questions on the application form are answered honestly and in full. It’s far better to give more information than not enough.

Sickness payments – for income protection your client's sick pay arrangements have a direct impact on the cover they need if they become too ill to work. Make sure the level of cover and the deferred period suits their needs and circumstances.

Customer review – as well as major life or lifestyle changes, there may be other areas that trigger the need to review existing cover. A change in employer, occupation or marital status could mean you need to revise your client's cover.

We’re happy to provide your documents in a different format, such as Braille, large print or audio. Just ask us when you get in touch.

All of our printed products are produced on stock which is from FSC® certified forests.

Royal London1 Thistle Street, Edinburgh EH2 1DG

royallondon.com

The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and thePrudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. It provides life assurance and pensions. Registered in

England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL. Royal London Marketing Limited is authorised and regulated by theFinancial Conduct Authority and introduces Royal London’s customers to other insurance companies. The firm is on the Financial Services Register, registration number

302391. Registered in England and Wales number 4414137. Registered office: 55 Gracechurch Street, London, EC3V 0RL.

June 2019 BR P8 P1 0004/1

handled with care - royal london group · time of claim average time plan in force before claim...

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