Insurers are now paying out on more than 88% of critical illness (CI) claims as the industry battle to stamp out non-disclosure shows signs of success, according to LifeSearch.
This is a significant increase from the last set of LifeSearch figures, published in October 2007, which suggested insurers, including the likes of Aegon, L&G and LV=, paid out in only 84% in cases.
According to the protection advice firm, one of the key reasons behind the increase is a fall in in non-disclosure, where the client withholds crucial information during the application process.
When LifeSearch published its last set of figures, non-disclosure stood at 8%. But this figure has dropped to 2.5%.
"There are two important reasons for this fall," says Matt Morris, senior policy adviser at LifeSeach.
"The first is the work of the ABI and insurers, who have put in place new classification systems that have increased paid claims.
"The second is the publication of claims stats, which LifeSearch pushed for several years ago, and served to highlight the areas where insurers needed to improve. Consumers are now seeing the benefits."
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