More critical illness claims were paid out than ever before in 2009, as the problem of non-disclosure continued to be eradicated, a new survey from Investment Life & Pensions Moneyfacts has revealed.
According to the research, insurers paid out an average of 90.5% of all critical illness claims last year, up from the figure of 88.4% reported by LifeSearch in 2008. When the clamour for claims statistics to be published first began six years ago, the figure was closer to 75%. Nine of the 12 providers listed either improved on or maintained the level of payouts they achieved in 2008.
Legal & General was found to have paid out the highest proportion of claims during 2009 (93.6%), closely followed by AXA and Bright Grey (93%). The number of claims rejected for not meeting the definition of the illness set out in the policy was found to have dropped to 7.6%, down from 9.1%. However, even more encouraging was that just 1.9% of claims were rejected on the basis of non-disclosure, where the claimant has been adjudged to have withheld pertinent information during their application for the policy, compared with 2.5% in 2008.
Critical illness statistics of % of claims paid in 2009;
Legal & General
Critical illness insurance: News update: 20 April 2010