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Daily Insurance Industry News
Wednesday 25th of April 2018
March 27, 2009

NU reports 14% rise in critical illness payouts

by Gill Montia

Story link: NU reports 14% rise in critical illness payouts

NU reports 14% rise in critical illness payouts

Norwich Union (NU) has published its critical illness (CI) statistics for last year.

The insurer settled 1,625 CI claims during 2008, totalling almost £121 million, a rise of 14% on a year earlier.

A further £216 million was paid to families who were either bereaved or had a family member diagnosed with a terminal illness.

During the year, 2% of claims were declined for non-disclosure at the policy’s outset, down from 4% in 2007.

Meanwhile, the number of claims declined as the condition claimed for was not covered by the policy stood at 8%.

The cost of the average claim exceeded £75,000, with cancer remaining the most common cause of claims, at 63%. Heart attack and Multiple sclerosis followed, both at 7%.

NU chief underwriter, Michael Whyte, comments: “During 2008, Norwich Union supported over 6,000 families when it really mattered … we are pleased with our progress on non-disclosure, yet are concerned that we have to tell some people that their claim was not going to be paid because their condition, or the severity of their condition, meant they were not covered by their policy.”

According to Mr Whyte, “it is up to the whole industry, both providers and advisers, to help customers understand the cover they buy”.

NU points out that terminal illness claims and death claims are paid under its life policies and are therefore not included in critical illness statistics.

 

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