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Critical illness payouts rising

Critical illness payouts rising

Category: Health insurance

Updated: 26/11/2012
First Published: 22/03/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
More critical illness claims were paid out than ever before in 2009, according to new research from

Insurers paid out an average of 90.8% of all critical illness claims last year, up from the figure of 88.4% reported by LifeSearch in 2008.

Legal & General was found to have paid out the highest proportion of claims (93.6%), closely followed by AXA and Bright Grey (93%).

The survey also revealed that the number of claims rejected for not meeting the definition of the illness set out in the policy had dropped to 7.5%, down from 9.1%.

However, even more encouraging was that just 1.8% of claims were rejected on the basis of non-disclosure, where the claimant has been adjudged to have withheld relevant information during their application for the policy.

This compared favourably with 2.5% in 2008.

With non-disclosure having long been a contentious issue within the critical illness industry, Richard Eagling, editor of Investment Life and Pensions Moneyfacts, said it appears the efforts of providers and the Association of British Insurers (ABI) to tackle the problem were finally being rewarded.

"The improvement in the claims statistics can only serve to improve confidence in the critical illness proposition," he added.

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