Critical illness insurance payouts hit record high
Critical illness payouts hit an all-time high in 2008 according to a health insurance survey.
Results of the survey, published in Health Insurance and Protection magazine, showed payouts by Legal & General (L&G) increased the most, up five per cent on 2007 with a 93 per cent payout rate.
Aegon Scottish Equitable and Norwich Union also reported payout rates of 91 and 90 per cent, respectively.
Bernie Hickman, managing director of L&G Protection, said: "Our claims history demonstrates that the measures taken to reduce declined critical illness claims are working."
L&G and other providers have suggested that the reduction in claims being declined for non-disclosure is in part due to new guidelines published by the Association of British Insurers (ABI).
An ABI spokesperson told the publication further work was being undertaken to improve clarity, particularly around the definition of total permanent disability.
The ABI is the trade association for British insurers, which has about 400 members providing 24 per cent of domestic insurance services sold in the UK.
The Insurance Helpline specialises in obtaining cover for people living with medical conditions.
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