Norwich Union has seen an 11% increase in critical illness (CI) payments since 2005, following initiatives to drive down non-disclosure.
The insurer’s latest Critical Insurance Claims Report shows 86% of CI claims were paid during the first half of 2007, compared to 80% in 2006 and 75% in 2005.
The company says in the last 12 months it has launched a campaign to educate consumers on the importance of full disclosure.
In July it also piloted a review of 5,000 existing protection policyholders, asking them to re-examine the original application and supply any information missed at the outset.
“This was designed to draw people’s attention to the issue of ‘non-disclosure’ and ensure they have the correct level of cover,” the insurer says.
Norwich Union risk products director Willie Mowatt says non-disclosure is a “huge concern” in the industry and he is delighted to see moves to stamp it out.
“Early indications from our pilot have shown an excellent response rate from existing customers providing extra information to ensure they have a valid policy,” he says.
“By taking the time and care that protection applications deserve and providing their insurer with full, accurate medical information, customers can be sure that they have a valid policy which will provide a payment in the event of a legitimate claim.
“As a customer-focused organisation it is our goal to pay 100% of claims.”
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