Friends Provident says its year-old stance on non-disclosure has helped reduce the number of declined critical illness (CI) claims by a third in the last 12 months.
The life and pensions firm says, for the first time, claims declined for non-disclosure are fewer than those declined for breach of policy conditions.
Since the beginning of 2007, the life and pensions firm has pledged to pay a proportion of a CI claim where unrelated non-disclosure had occurred.
Last year, only 6.5% of claims were declined due to non-disclosure, down on 9.9% the previous year, while 7% were turned down because the policy definition was not met, although this too was down from 8.8%.
In total, Friends Provident says it paid 86.5% of claims, up from 81.3% in 2007.
Mark Jones, head of protection at Friends Provident, says: “I’m delighted that the three pronged approach we’ve applied to our range of protection products of education, simplification and promoting a culture of fairness, is beginning to pay dividends.
“The improvement in the number of critical illness claims paid will help increase consumer confidence in protection products.”
In 2007 the company paid over £35.7m in critical illness claims and cancer, again, was the most common cause for a claim.
In addition, the average age of a claimant was 44, the average CI payout was over £58,500, and the largest individual claim last year was £750,000.
020 7034 2636
Smoking biggest culprit; obesity second
Average earner will gain £840 in 2018
Will also move heritage items
Responding to letter from Treasury Committee chair Nicky Morgan