Fidelity: Profit down as claims up

It has reported underlying profit of $13.6 million for the 2019 financial year, down from $19.2 million last year.

It said that was in part due to a 17% increase in gross claims, restructuring costs and the insurer’s response to the Financial Markets Authority and Reserve Bank review into life insurers’ conduct and culture.

Chief executive Nadine Tereora said the rate of claims was increasing as policyholders got older and cancer and mental illness became more prevalent.

It accepted 91% of all claims in the year. The rate of accepted income protection claims was up 21% over 2018.