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Daily Insurance Industry News
Tuesday 02nd of September 2014
March 7, 2008

Legal & General payout rate for critical illness rises

by Richard Kilner

Story link: Legal & General payout rate for critical illness rises

Over the course of last year, Legal & General paid out £110m in critical illness claims.

The claim average was for £60,000, and typically for a serious condition such as heart attacks, multiple sclerosis or even a terminal illness.

The figures reveal that almost 90% of claims were successful.

In 2006 the success rate was 83.3%, and this rose 88.2% in 2007.

Claims not paid out due to non-disclosure fell from 12.1% two years ago to just 7.7% in 2007.

The increase both in successful claims and the overall amount paid out is a strong sign of Legal & General’s commitment to lessening the number of claims declined, according to Bernie Hickman, the firm’s MD of Protection.

Such an approach should assist customers in believing that insurers will treat them fairly, Hickman has stated, adding that the firm was in the business of paying out when customers need it.

A guide for protection claims and non-disclosure has been published by the Association of British Insurers, which Hickman has chaired.

The guide’s intent is to homogenise insurers by making them more consistent with one another, thus helping to decrease the quantity of claims declined.

In addition to the critical illness payouts, £179m was paid out in life insurance, at a rate of 96.3%.

 

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