Howard Levitt (best-known for either his employment law articles in the National Post or [anecdotally and allegedly] this Ferrari) and Rob Lilly (partner at Howard's firm) recently wrote an article describing the most common reasons for insurers to deny disability claims.

The article doesn't cite any statistics (which are exceptionally hard to come by with respect to internal insurer information, and usually only released where the insurer's marketing department sees a benefit in making stats available).

I encourage you to read the article for yourself, as I'm not going to regurgitate it here. There are some implications for advice-givers that I think are worth discussing.

For those who might be involved in a claim for disability insurance (whether as the agent who sold and is servicing a policy, or as a planner working with a client who is navigating a claim), the article is worth sharing.

If you decide to get involved in helping somebody navigate a claims process, keep in mind that this can be a fraught undertaking. The insurer won't release information to you (likely even with client consent). I've run into cases where a claimant complained to their agent about denied claims, and the agent advocated forcefully for their client, only to later find that there was some key information that the client was withholding from the agent.

Probably the best advice is that the claimant must be their own strongest advocate. A claimant who keeps great records and is able to help their claims examiner understand the 'story' of their disability as one consistent narrative will have an easier time. This doesn't mean making up information or being selective with what to tell that person. This means telling a comprehensive story about what's happening.

Rather than acting as an advocate for a claimant, consider helping that person become their own advocate. Help them keep their documentation organized. Listen to their story and point out areas where an insurer might ask for more information. Keep in mind that claims examiners are humans doing a job, which is paying claims that deserve to be paid. Encourage the client to make that job as easy as possible.

Big thanks to Dave Patriarche over at Canadian Group Insurance Brokers, who shares so much great content.