CI payouts improve - Life insurance - News - Moneyfacts

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CI payouts improve

CI payouts improve

Category: Life insurance

Updated: 26/11/2012
First Published: 23/12/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The number of critical illness insurance claims paid out by insurers has risen significantly over the past few years, according to the latest data from the Association of British Insurers (ABI).

90% of critical illness claims were paid in 2008, up from just 80% in 2005.

Meanwhile, it was also revealed that 97% of term life insurance claims were paid last year.

It means that in 2008 over 100 families and individuals a day were helped by claiming on their life or critical illness insurance policies.

The average claim was £52,000, double the average UK annual salary.

The association said the figures demonstrated the success of its Code of Practice on CI Insurance in reducing the number of claims declined due to non-disclosure of medical information.

It added work was already underway with members to tackle the number of claims declined due to not meeting the definition of total permanent disability on a critical illness policy.

"The insurance industry pays out £5.9m every day in life and critical illness insurance claims, making a real difference to people's lives at the most difficult of times," said Nick Starling, the ABI's Director of General Insurance and Health.

"Insurance companies want to pay all valid claims, which is why the ABI is not complacent and continues to look at ways to reduce the number of claims declined even further."

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