Critical illness payouts rise as non-disclosure rates down
Thu, 13 Aug 2009
Critical illness payouts have risen above 88 per cent, as the protection industry has strived to reduce rates of non-disclosure to an almost negligible level, according to LifeSearch .

This is a significant increase from the last set of LifeSearch figures, published in October 2007, which indicated that insurers, including Aegon, Legal and General and LV=, paid out in only 84 per cent in cases. The protection advice firm claims that one of the principle reasons behind the increase is a fall in in non-disclosure, where the client withholds crucial information during the application process.

When LifeSearch published its last set of figures, non-disclosure stood at 8 per cent, however this figure has dropped to 2.5 per cent.

Matt Morris, senior policy adviser at LifeSeach, said: "There are two important reasons for this fall. The first is the work of the Association of British Insurers and insurers, who have put in place new classification systems that have increased paid claims. The second is the publication of claims stats, which LifeSearch pushed for several years ago, and served to highlight the areas where insurers needed to improve."
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