£900m goes to protection customers
Aviva has confirmed that it paid more claims than ever in 2017, with a total of £900m worth of claims settled for 25,000 customers (97.2%) - an increase from 23,000 and £30m more than last year's figure.
£525m was paid to families of customers who had died or to individuals diagnosed with a terminal illness, while £337m worth of claims went to customers diagnosed with critical illness. More than £38m of benefits were paid to customers with income protection cover or fracture claim benefits.
Life, CIC, IP
During the year, 98.9% of life insurance and 93.2% of CIC (up from 92.3% in 2016) claims were paid.
The average sum for CIC paid out was £79,162 and cancer remains the most common cause (62%), followed by heart attack (9%), stroke (6%), children's critical illness (5%) and multiple sclerosis (4%).
For income protection, 88.8% of claims were paid on the new ABI methodology of stating new claims received in the year that they were accepted, an increase from 84% of claims paid in 2016 (based on the same methodology).
Mental health conditions accounted for the majority of IP claims (28%), followed by musculoskeletal (15%) and cancer (9%).
The average age of claimant for IP was 42 years and 47 for CIC.
Of the CIC claims not paid, 1.2% were declined due to non-disclosure and 5.2% for conditions not being met, while the most common reasons for IP claims not being received was due to the definition of the disability not being met, followed by misrepresentation of important medical information either before the policy was taken out or following an accepted claim.
"Our claims data shows the sheer scale of the vital financial support that we provide to customers and their families, helping them at some of the most difficult times of their lives," said Robert Morrison, global chief underwriter, health and protection at Aviva. "Last year saw our biggest ever payout of £900 million, making a real difference to the financial wellbeing of more than 25,000 customers and their families.
"We know that consumers are doubtful and worry that insurers don't pay claims but these figures and the wider protection industry's claims data show that this is simply not true," continued Morrison. "At Aviva we are committed to paying as many claims as we can, shown through the increase in our claims paid rates and our overall rate of 97.2% of all claims paid. We are equally committed to providing our customers with an exceptional, quick claims service and additional support services to help them when it matters most."
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