One claim paid every four seconds
Toronto, ON (Apr. 8, 2019) – Two-thirds of people believe insurers are not fair – that insurers avoid paying out or hide behind bureaucracy to make it difficult for customers to get their money.
We cannot avoid that this is how some customers feel and we want to change this. That is why for the second year running we have published the data on all of the claims we received.
As an insurer it seems obvious to say that paying claims is what we do but the fact is, we exist to pay claims. In 2018 we paid over 8.3 million claims across the Aviva group – that is one every four seconds. This was in 14 countries, across life, critical illness, car, home, travel and health insurance and represented 98% of all claims received, the same percentage we paid out in 2017.
“The whole point of insurance is to pay out when our customers need us,” said Maurice Tulloch, Chief Executive Officer of Aviva plc. “It’s a fundamental part of our business. We’re determined to make claiming as easy, quick and painless as possible.”
We believe it’s important to be transparent about our claims, so our customers have the confidence and reassurance that we’re here when they need us. View the infographic below or read on more to find out more about our claims story and what we’re doing to make it easier to claim.
Our claims story
In 2018 we paid 98% of our claims. This number reflects the total claims paid vs all claims received across the 14 markets we operate in, for all our insurance product lines2 (if a customer chose to abandon or withdraw their claim it was not counted).
Here are some examples of how many times we supported our customers when they needed us last year. The data shows that across Aviva we paid:
- 1,004,733 Motor claims – Enough cars to go once around the world
- 323,837 Home claims – One claim paid every 100 seconds
- 131,990 Travel claims – One claim paid every four minutes
- 47,388 Life policies – Helping families in 13 countries cope during the hardest time
- 12,197 Income protection claims – For customers who could no longer work
Improving our claims processes
- Making it easier for customers to check or switch their level of cover with AvivaPlus.
- Helping customers manage claims on the move through our MyAviva app.
- Speeding up home claims with video chat.
We are not simply sharing our claims data to show how many claims we pay, we are also working to improve the way we pay claims. It is important that claiming – a time when customers need our help – is as easy as possible. Here are some examples of what we are we doing to help:
Giving customers control
In December 2018 we launched an industry-first, subscription-style insurance product in the UK. AvivaPlus is designed to address consumer concerns with the industry and give customers more control. It offers simple, flexible insurance cover with no charges for cancelling or changing a policy and a renewal price guarantee for home and car insurance. The guarantee ensures existing customers are offered the same or an even better price than an equivalent new customer at their next renewal.
Simplifying the process
We’re committed to making insurance easier for our customers, including simplifying the language and content of our policy documents to make what’s covered clearer to customers. Through our digital business, we’ve cut the number of unnecessary questions we ask when customers get a quote. This helps to avoid confusion and uncertainty about whether a claim will be paid.
In Canada, we launched the first automatic First Notice of Loss (FNOL) service at all Collision Reporting Centres (visited by up to 70% of customers before they contact their insurer). This means customers can report their collisions automatically and create a claim on the spot. They are also kept up to date via SMS and email on their claim number, told how to contact their claims adjuster and the status of their claim as it progresses.
We have a partnership with Amazon to offer our UK customers a gift voucher they can spend right away to replace lost or damaged goods.
“As important as what we pay is how we deal with people at a difficult time,” said Group CEO Maurice Tulloch. “Claiming needs to be easy.”
Focus on prevention
We’re using data and predictive modelling so we can be better prepared for natural catastrophes. In 2018 Canada had one of its worst storm seasons on record, with three windstorms in April alone and more catastrophes since, including the tornadoes that devastated the Ottawa-Gatineau area. Our use of data has made sure that our response improved with each event, and we had teams of adjusters on the ground helping customers from the morning after the tornadoes hit.
Why are some claims rejected?
We only reject a small number of claims mainly due to missing documents, non-disclosure and fraud.
Some claims are also rejected because the customer didn’t have the right level of cover they thought. We want to change this.
While we are proud to pay as many claims as we do, we’re not complacent about it. We reject a small number of claims, just 2%. While we’re working to reduce this, there are some things that can help customers make sure that – if they need to claim – their claim will be paid.
The reasons most claims are rejected:
- Risk not covered – The most common reason that we reject a claim is a mismatch between what customers believe their policy covers and what policies actually cover. While we’re working to make the language of our policies clearer and simpler, we also encourage customers to understand what a new policy includes when they take it out, so there are no surprises. Customers can also call us any time to check on their coverage and in some markets can check or switch their level of cover using the MyAviva app.
- Non-disclosure – We reject a small proportion of claims because of a pre-existing condition that the customer did not disclose when taking out the policy. While in most cases this is a genuine oversight, we need to make sure we keep a disciplined approach to our claims process. This means we cannot accept claims for risks we didn’t know about.
- Evidence missing – Sometimes we can’t accept claims because we can’t verify them. We’re taking action to simplify and speed up the process to make a claim, but there is still a need for customers to submit documentation to demonstrate the validity of their claim. Whether it’s evidence of an accident or a copy of an invoice they want to get reimbursed, we can’t pay if we don’t receive the relevant documents.
- Fraud – We have zero tolerance for fraud. By detecting and avoiding paying fraudulent claims, we help to keep premiums low for genuine customers.
Aviva’s claims story in Canada
In 2018 we paid 99% of all claims received. We offer general insurance in Canada, so these claims include home and motor insurance. We paid out over $2.7 billion Canadian dollars to our customers.
Motor-related claims continue to drive high volumes, and so we’re focused on ways to improve the claims experience for customers following an accident. Earlier this year we launched Canada’s first automatic First Notice of Loss service at Collison Reporting Centres. This digital solution allows for claims to be resolved more quickly and efficiently.
We’re also using data and predictive modelling so we can be better prepared and have our teams ready when they are needed. 2018 saw some of Canada’s worst storm seasons historically, with three windstorms in April and more catastrophes later in the year, including the tornadoes that devastated the Ottawa-Gatineau area.
Our use of data has made sure that our response improved with each event, and we had teams of adjusters on the ground helping customers from the morning after the tornadoes hit. We know it is not just about being on the ground. We’re also making better use of data using predictive modelling so we can be better prepared and make sure staff are ready when they are needed.
Learn more about our claims story across our markets – the UK, France, Poland, Italy, Ireland, Singapore, and India – in the Aviva.com press release.
1. According to Aviva’s Consumer Attitudes Survey, March 2018.
2. The percentage was calculated by dividing all paid and rejected claims by the total number of claims received between 1 January and 31 December 2017. The figure includes all insurance product lines across all our businesses and excludes benefits and pensions, which have a payout ratio of 100%. It also excludes invalid or incomplete claims, such as instances where claims were opened in error, abandoned or withdrawn by customers.
About Aviva Canada
Aviva Canada is one of the leading property and casualty insurance groups in the country, providing home, automobile, leisure/lifestyle and business insurance to 2.8 million customers. A subsidiary of UK-based Aviva plc, Aviva Canada has more than 4,000 employees focused on creating a bright and sustainable future for their customers and communities.
Aviva Canada invests in positive change through the Aviva Community Fund, Canada’s longest-running online community funding competition. Since its inception in 2009, the Aviva Community Fund has awarded $9.5 million to more than 400 charities and community groups nationwide. Aviva Canada, bringing over 300 years of good thinking and insurance solutions to Canadians from coast to coast.
For more information, visit aviva.ca.
Source: Aviva Canada Inc.Tags: Aviva, claims, data, subscription