Insurers pay out record critical illness claims
by Gill Montia
Story link: Insurers pay out record critical illness claims
Research from Moneyfacts Group shows that 2009 was a record year for the payment of critical illness claims, as insurers continued to reduce the number of claims rejected for non-disclosure.
According to the financial information provider, an average 90.5% of all critical illness claims were paid out last year, up from 88.4% in 2008 (as calculated by LifeSearch) and from 75% when records began in 2004.
Legal & General led the field by paying out 93.6% of claims, closely followed by AXA and Bright Grey both at 93%.
Non-disclosure accounted for 1.9% of rejected claims, compared with 2.5% in 2008, and the proportion of claims rejected for not meeting the policy definition of an illness also fell in 2009, to 7.6%, down from 9.1% a year earlier.
Moneyfacts’ editor of investment life and pensions, Richard Eagling, says: “With non-disclosure having long been a contentious issue within the critical illness industry, it appears the efforts of providers and the Association of British Insurers to tackle the problem are finally being rewarded.”
He adds: “The improvement in the claims statistics can only serve to improve confidence in the critical illness proposition.”