Providers release competitive set of results
Critical illness (CI) providers are consistently paying out on 90% of claims or more, results published today by Friends Life and Legal & General show.
Legal & General paid 93.2% of claims in 2011 while Friends Life paid 90% of claims.
Legal & General paid out a record total of £441m in death and CI claims last year, up 18% on the £373m it paid out in 2010.
The provider paid out 2,784 claims in 2011, with the average payment per claim standing at £63,573 and the average age of the claimant being 43 years. It says that cancer remains the number one reason for a CI claim.
Of the 6.8% of CI claims that were declined by Legal & General, 2.6% were declined for non-disclosure and the remaining 4.8% for failing to meet the policy definition.
Meanwhile Friends Life paid out a total of £89.5m in claims last year. The provider declined 4% of claims due to non-disclosure and a further 6% for failing to meet the policy definition.
Out of 1,733 total claims, Friends Life paid out on 1,565. The average age of a male claimant was 45 and for females, the average age was 43.
Steve Casey, head of marketing and intermediary proposition development at Friends Life, said: “The wide range of conditions that our customers continue to claim for demonstrates that not all critical illness covers are the same.
“It is important that people ensure that they have the right cover in place and that advisers work hard to match their clients to relevant and appropriate policies for their needs.”
Legal & General and Friends Life’s results are broadly in line with those published by other providers earlier this month.
Aviva paid out 94.1% of CI claims in 2011, while AEGON paid out 93% of claims and Scottish Provident paid out in 91% of cases.
For free quotations on critical illness