Scottish Widows unveils responsible investment and stewardship framework
Scottish Widows has launched a new responsible investment and stewardship framework, outlining plans to enhance its sustainability practices and influence positive change across the industry. The framework provides greater transparency on how the insurer will develop its investment fund range, helping address the material financial risks and opportunities linked to Environmental, Social and Governance (ESG) issues. It will help shape decisions on asset allocation, manager selection, fund research and engagement activity. Developed by Scottish Widows’ new Responsible Investment team, the focus of the framework is to integrate responsible investment activity across the fund range and ensure it meets customers’ evolving needs. Made up of six principles of responsible investment, the framework includes implementing exclusions across funds managed and mandated by Scottish Widows, such as its workplace pension default funds; reducing the carbon intensity of their equity exposure; and developing a broader range that enables customers to support causes close to their hearts. With the aim of extending these principles to all asset classes over time, the team will work with policymakers and the industry to promote direct investment opportunities required to successfully transition to a lower carbon economy. The framework also outlines the insurer’s stewardship approach to influence positive change among companies that are failing to address climate change risks. It will also enhance the existing strong governance of fund manager partners to deliver better investment outcomes for customers. Maria Nazarova-Doyle, Head of Pension Investments at Scottish Widows, said: “Our role is to keep our customers’ money safe and help them plan for their financial future. Large-scale challenges we are facing today, such as climate change, make our role even more important. We must aim to deliver the best possible retirement outcomes for our customers, and that’s at the heart of our responsible investment approach. “As the industry focus on responsible investment grows, so does our customers’ interest in investing more sustainably. To continue delivering competitive returns for our customers, we must fully embrace responsible investment practices, which will allow us not only to manage risks and returns in a more effective way in the funds that we offer, but also empower customers to invest their savings in a way that reflects their values.” Scottish Widows will continue to collaborate with the industry to drive positive action through membership of the UN Principles of Responsible Investment and the Institutional Investors Group on Climate Change. Its commitment to responsible investment is fully supported by Lloyds Banking Group, which recently unveiled its ambition to help reduce the carbon emissions it finances by more than 50% by 2030.
Scottish Widows commits to industry claims charter
Scottish Widows has signed up to the Protection Distributors Group Claims Charter (PDG), as part of its commitment to provide a clear and supportive service for clients during the event of a claim.
The insurer assigns a dedicated claims handler for each case, provides regular client updates and ensure payment of a claim within 72 hours of it being approved. Scottish Widows uses e-signature technology to obtain customer consent to request medical evidence more quickly, as well as notifying intermediaries when a claim is received from a client.
Scottish Widows has also signed up to the PDG’s funeral pledge and committed to forward up to £10,000 to the funeral director of a policyholder before probate is settled, so that families can mourn and bury their loved ones without financial concern, which is above and beyond PDG expectations.
Scott Cadger, Head of Protection Underwriting and Claims Strategy at Scottish Widows said: “We are proud of not only the claims we pay but the difference we make to the lives of our customers every day. It’s the people behind the numbers who matter most – those whose lives have been turned upside down because the worst has happened to them and their families.
“We strive to ensure that we are transparent, fair and most importantly, human when we’re dealing with our customers at what is always a difficult time. When insurance works well, the positive effect it can have at the worst of times is immeasurable.”
Alan Knowles, Chair of the Protection Distributors Group, added: “Scottish Widows is joining a growing number of insurers which have taken the step to show they put the claim at the heart of their businesses. We are delighted to see Scottish Widows sign up to both initiatives and we hope more will follow too.”
Scottish Widows gives a safety net to thousands of families by paying out over 98% of protection claims
Last year, 99.3% of life claims and 94.1% of critical illness claims were paid out by Scottish Widows, according to the insurer’s latest claims statistics. This represents 7,908 and 1,591 claims respectively – an increase on paying out 7,469 life claims (98.99%) and 1,769 critical illness claims (93.06%) in 2017.This is a total of 9,499 lives the insurer provided with financial reassurance during a difficult time. More than £208 million was paid out in total, at an average of over £4 million per week.Scott Cadger, Head of Protection Underwriting and Claims Strategy at Scottish Widows said: “We are proud of not only the claims we’ve paid but the difference we make to the lives of our customers every day. Providing security to families at some of the most challenging times of their lives is the most important part of our jobs.“These results are testament to our continued support of customers and the financial safety net we as insurers provide, helping families at such a difficult time in their lives. It may surprise people that the majority of claims are paid out and I hope these figures help to dispel the myth that insurers don’t pay out when customers need them most.”Life claims: key statistics – The total amount paid out in life claims was just under £136 million, with £10.9 million paid in terminal illness claims.- 52% of all claims from women were as a result of death from cancer, compared with 44% of men.- Heart-related claims accounted for 22% of cases for men, compared to 12% of cases for women.- The average life claim paid was £43,221, and the highest individual claim was over £1.2 million.Critical illness claims: key statistics- The total amount paid out in critical illness claims was £72.5 million.- Cancer was the main reason for women making a claim at 73% of all cases; this was followed by multiple sclerosis (6%), stroke and heart attack (5% each).- Among men, 51% of claims made were for cancer, with the second most common cause being heart attacks at 20%.- The average critical illness claim paid was £45,593, and the highest individual claim was just under £622,000.