PDG updates claims charter approved insurers after standards slip in pandemic

The Protection Distributors Group (PDG) has revealed the latest list of insurers that meet its best practice claims criteria to become its claims charter signatories.

The move follows a review of practices – the first since the charter was introduced in 2018 – after the group’s members noted that claims standards had slipped during the pandemic.

The PDG added these reviews will now be carried out annually as it seeks to encourage insurers to improve best practice and keep claimants at the centre of the claims process.

Fourteen insurers have met PDG’s standards and been named as signatories to the claims charter for 2022. These are Aegon, AIG, British Friendly, Guardian, Holloway, HSBC Life, Legal & General, LV=, MetLife, Scottish Widows, Shepherds Friendly, The Exeter, Vitality and Zurich.

All of those listed were previous signatories aside from HSBC which has recently signed up.

Royal London is not included in the claims charter but the PDG said the insurer was working hard to rejoin as soon as possible.

The claims charter was introduced in 2018 to encourage better outcomes for claimants by improving basic levels of best practice undertaken by insurers. The charter sets out several criteria which must be met before an insurer can become a signatory.

Signatories of the charter commit to:

 

Neil McCarthy, chairman of the PDG, said: “There is no doubt the past two years have been challenging for insurers, particularly with regard to claims handling. But we felt the time was right to review claims practices across the industry to ensure we are maintaining the standards we have currently identified as being best practice.

“We ran an in-depth survey looking at insurer claims practices across the industry to ensure existing claims charter signatories were continuing to abide by the criteria. There was a sense among the group members that claims standards had slipped during the pandemic, and that there was therefore a need to investigate this to ensure the robustness of the charter.

“Where we identified the charter’s criteria was not being met, we worked with insurers to ensure improvements were made for claimants and intermediaries so that as many as possible met the charter’s requirements.

“It is our very real hope that those insurers who are not current signatories will work towards meeting the criteria and we look forward to welcoming further signatories in the future.”

The PDG has 21 full members from the protection intermediary community.

 

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