Insurers want to pay claims: Five reasons why 90% of CI claims are paid

clock

The Association of British Insurers (ABI) this week revealed that nine in every ten claims made under a critical illness (CI) policy in 2010 was paid by the insurer.

Compare this to just three years ago, when 84% of claims were paid. That means, in 2007, 16% of claims were turned away by the provider. Or 1,900 claims out of a total of 11,900. The situation was evern worse a decade or so ago, when the product was suffering a serious image problem. Since then the market has improved significantly. But why? 1) ABI standard definitions In 2007 the ABI began introducing standard definitions for many common conditions on critical illness policies. It is widely felt by many in the industry that this is the main reason for the improvement in claim...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Critical Illness

Defaqto launches critical illness comparison tool

For Engage planning solution

Adam Saville
clock 12 February 2019 • 1 min read

Breast cancer still biggest cause of CI claims - Aegon

Group paid £56m in last decade

Adam Saville
clock 25 October 2018 • 1 min read

F&TRC rolls out age-banded critical illness analysis for advisers

Data from each insurer

Adam Saville
clock 27 September 2018 • 2 min read