ClearView reports income protection lift

The life insurer has recorded a profit in its income protection book for the first quarter of the 2021 financial year as a result of lower than expected claim numbers.

In a statement to the market on Wednesday, ClearView said it had recorded a $1.1 million claims experience profit in its LifeSolutions income protection (IP) portfolio over the three months to September.

ClearView said the result had been driven by “lower claim numbers than expected, coupled with an increased focus on claims management and resourcing to improve IP claims outcomes”.

The group said its life insurance segment overall had recorded a $1.7 million increase in claims experience profit over the quarter, a result of strong underlying claims performance, while its in-force life insurance portfolios grew 8 per cent to $276 million.

However, ClearView still recorded a $0.5 million loss in its LifeSolutions lump sum product category, driven “primarily from TPD and trauma claims”, the group said.

The company also saw its lapse experience loss worsen by $300,000, saying that lapses had been “slightly higher than expected” over the three months but that “retention strategies remain in place and are taking effect”.

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Further, ClearView cautioned it expected claims numbers to worsen in the coming months due to the “social and health challenges” of the COVID pandemic.

The group maintained it would achieve an underlying net profit after tax of between $20 million and $24 million for the 2021 financial year.

ClearView reports income protection lift
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