HSBC Life (UK) Ltd has signed the Protection Distributors Group (PDG) Claims Charter and Funeral Payment Pledge. The PDG introduced the Claims Charter to encourage best practice during the claims process and ensure claimants have the best support with claims paid as quickly as possible.
There are six core elements to the Charter, including facilitating telephone-based claims processes; the claimant having a named point of contact with regular updates and quick response times; intermediaries being notified when claims are made to ensure records are updated and potential distress minimised; as well as claimants receiving payment promptly once their claim has been approved.
The PDG’s Funeral Payment Pledge was created to ensure that families can meet funeral costs. It requests that insurers offer to advance some funds directly to the funeral director when no other arrangements have been made.
The Pledge asks three things of insurers:
- To pledge an advance of a minimum of £5,000 to a funeral director when customers cannot otherwise pay the claim. For example, due to probate delays
- To proactively offer this in every case where there is a delay
- To pay the funeral director after insurers have fully assessed and accepted the claim to eradicate instances of non-disclosure.
Commenting on HSBC Life’s involvement, Mike Furniss, Head of Protection Sales at HSBC Life (UK) Limited, said:“It’s vital for us to provide our customers and their families with the very best care during the most difficult times in their lives. HSBC Life is very committed to abide by the PDG’s Claims Charter and Funeral Payment Pledge, to do as much as possible to make a positive difference for customers and improve quality of service across the protection sector.”
Neil McCarthy, Chair of the Protection Distributors Group (PDG), added: “I’m delighted that HSBC Life have committed to meeting the Claims Charter and Funeral Payment Pledge standards when dealing with claimants at the time they really need support and prompt action from their insurer. We have been working with insurers to identify those able to meet the Charter requirements, following the impact of Covid on claims and service, and will be confirming which insurers agree they meet the suggested minimum standards in mid-July.”
The Charter aims to secure a minimum level of support for claimants from insurers and hopes that most would go above and beyond. Routinely reviewed by the PDG for the benefit of consumers, it includes six core elements:
- Dedicated Claims Team should be available, with a phone-based claims process for claimants to submit and manage their claim throughout, supported by digital documentation to assess claim efficiently. Paperwork should only be used when no digital alternatives are possible or where a claimant requests.
- No potential claimant can be turned away by anyone outside the Claims Team.
- Claimants should have a named point of contact and receive regular updates at least every two weeks – unless otherwise agreed – to keep them informed of progress. During the claims process, claimants’ queries should be responded to by end of next working day.
- Intermediaries should be notified of all claims when made, – including the product being claimed on – without the customer being asked to Opt-in. Opt-out options should be avoided whenever possible, unless the customer explicitly asks for their intermediary not to be kept informed, in which case their wish must be adhered to. This is designed to ensure records are updated and no potential distress caused to clients and families, due to Intermediaries not knowing about a claim.
- Proactively offer the PDG Funeral Payment Pledge and/or advances payments to speed-up life cover claims where there is no trust in place, or where other factors could delay payment being made.
- Once a claim is approved, money should be paid to the claimant within 72 hours (except when external factors, out of insurer’s control affect the process, such as probate). This excludes income protection claims which should be paid at the earliest available payment date.
ENDS
HSBC Life
Nancy Baynes +44 20 79930645 nancy.baynes@hsbc.com
Mathew Barling +44 20 7992 5568 mathew.barling@hsbc.com
Notes to Editors
About HSBC Life (UK) Limited
HSBC Life (UK) Limited is a subsidiary of HSBC Bank plc and was founded in the UK in 1988. HSBC Life (UK) Limited offers a range of insurance services to meet protection and wealth management needs and help clients to manage, protect and grow their wealth. Our services and solution are available through HSBC banking channels and selected third-parties, including financial advisers and aggregators. For more information on HSBC Life (UK) Limited range of services go to https://www.life.hsbc.co.uk/ and for more information on HSBC please go to https://www.hsbc.com
About HSBC Life
HSBC Life is the insurance business of the HSBC Group. We manufacture life and health insurance products in Hong Kong, mainland China, Singapore, India*, France, UK, Malta, Mexico, and Argentina. HSBC Life offers a range of insurance products to meet the protection, education, retirement, wealth growth and legacy planning needs of our customers. Our services and products are available through HSBC banking channels, selected third parties, including financial advisers and aggregators. *Through our joint venture, Canara HSBC OBC Life Insurance.
About HSBC Holdings plc
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. HSBC serves customers worldwide from offices in 64 countries and territories in our geographical regions: Europe, Asia, North America, Latin America, the Middle East and North Africa. With assets of US$2,958bn at 31 December 2021, HSBC is one of the world’s largest banking and financial services organisations.
About Protection Distributors Group (PDG)
The Protection Distributors Group (PDG) was formed in 2016 and has since driven market-wide changes to the industry. The group comprises of distributor firms with an aim to improve the protection market and lobby insurers for better consumer outcomes.