"Insurers have become very good at releasing and publicising their payout rates among the adviser community but have made no attempt to advertise these impressive rates directly to consumers"
Consumers surveyed by Drewberry believed that only 50% of life insurance claims were paid out by insurers, compared to ABI statistics which show that 98.2% of claims were paid out in 2015.
Its campaign will be supported by a consumer survey with a prize draw, which asks participants what percentage of protection claims they believe were paid in 2015.
Drewberry will then reveal the actual payout rate, along with a breakdown for life insurance, critical illness cover and income protection, and an option to find out more about those products.
Drewberry director, Tom Conner, said: “The percentages of claims that are paid by protection insurers are generally excellent and have improved enormously over the last 10 years. Despite this the general public have the impression that payout rates are truly appalling.
"Insurers have become very good at releasing and publicising their payout rates among the adviser community but have made no attempt to advertise these impressive rates directly to consumers, and as such there has been very little change in consumer perception since these rates started being publish a number of years ago.
“We hope this campaign can go a little way to bridging the gap between perception and reality, and we encourage other advisers and insurers to do their bit because hopefully as a collective we can start to change the negative way in which our industry is perceived.”
