Norwich Union paid out 813 critical illness claims during the first half of 2008, averaging just under £72,000. Nearly 94% of claims received were paid compared to 85% during the same period of 2007.
The number of claims declined for non-disclosure of medical information fell to 1.5% (to end June 2007: 6.7%). This follows a series of initiatives undertaken by Norwich Union to help drive down non-disclosure.
Norwich Union paid out more than £58 million to policyholders who claimed on their critical illness policies over the last six months. Highlights include:
Total payouts for policies increased to over £58 million, compared to over £52 million in the first half of 2007
Cancer remains the most common cause of claims at 60.1%
The number of children's claims paid increased to 42 from 15 during the first half of 2007
In total, 813 claims were paid out and the average payout was just under £72,000
The number of claims rejected for non-disclosure of medical facts at the policy's outset continued to fall to just 1.5% in 2008, from 6.8% at June 2007 and 4.17% for the full year
During the first half of 2008 claims by illness type were as follows:
Louise Colley of Norwich Union says: "Nobody wants to think about the prospect of becoming critically ill, but it happens to one-in-four of us. It is not until you speak to customers who have received a payment that you appreciate just what a difference it makes to them. These are people who have had their lives turned upside down yet remain incredibly positive. When we are able to relieve some of the financial pressure, it means they can focus on what's really important - themselves and their families.”
Critical illness insurance: News update: November 2008