Insurer releases critical illness statistics for 2008
The insurer has also paid out a further £216 million to the families of claimants who have died, or been diagnosed with a terminal illness.
Key statistics from the company’s annual CI report include:
- Total payouts for CI policies increased to almost £121 million from £106 million in 2007. In total 1,625 claims were paid during 2008.
- That it paid 90% of all claims, with the average claim at over £75,000
- The number of claims declined for non-disclosure of medical facts at the policy's outset fell to 2% for the full year, down from 4% in 2007 and broadly level with those announced for the half year 2008.
- The number of claims were declined as the condition claimed for was not covered by the policy was 8%.
- Cancer remains the most common cause of claims at 63%.
Michael Whyte, chief underwriter for Aviva, said: "It's not until the worst of times that customers see the real benefit of this type of policy.
"We have continued our hard work to tackle non-disclosure, which as a result, reduced to 2% in 2008, representing a 50% reduction when compared with 2007.”
However, Michael added that while he was pleased with the progress on non-disclosure, he remained concerned not enough people are aware of the details within their policy, and their expectations of insurance payouts.
"We have to tell some people that their claim was not going to be paid because their condition, or the severity of their condition, meant they were not covered by their policy.
“It is up to the whole industry, both providers and advisers, to help customers understand the cover they buy. We are sharing this information because we want to raise awareness of this issue so that we can begin to tackle it as an industry as it is in our interests to ensure we do not have customers who end up disappointed at difficult times in their lives,” he said.