Royal London pays 94% of CI claims

clock

Royal London's UK Intermediary protection business - which includes the brands Scottish Provident and Bright Grey - has revealed it paid 94% of critical illness (CI) claims in 2014.

The insurer also revealed it paid out £132 million to critical illness policyholders during 2014. Overall, it paid £198 million in total for life and CI claims. 

The insurer revealed that just 1% of CI claims were declined for non-disclosure.

The average pay out for a CI claim was £87,069 with the largest pay out at just over £900,000. The average age of a claimant was 48 years old and the youngest adult claimant was just 24 years old.

Around two thirds of all critical illness claims were for cancer (65%), followed by heart attack (13%) and stroke (6%).

In addition, 98% of all term life cover claims were paid in 2014 totalling just over £58 million.

Debbie Kennedy, head of protection proposition for Royal London's Intermediary Division, said: "It's pleasing to see such a high claims paid figure which helps generate massive confidence in Royal London with advisers and their clients. All too often the public only get to hear about those cases where claims have been declined, but with just 1% of our critical illness claims being rejected for non- disclosure, consumers can be confident that their claim will be paid.

"It is also interesting to see that once again the same four illnesses account for nearly 90% of all the critical illness claims that were paid in 2014. This is why we continue to focus our definition enhancements on the most common reasons for claims so that we can add real value and be able to pay even more claims in 2015."

Further reading: 

Royal London protection profits up

Royal London admits Bright Grey and Scot Prov were 'tired' propositions

Opinion: Why honesty is the best claims policy

 

More on Individual Protection

22% of adults without children delay taking out protection: L&G

22% of adults without children delay taking out protection: L&G

11% were putting off financial decisions until marriage

Jaskeet Briah
clock 27 March 2024 • 2 min read
Over-50s life insurance undersold due to lack of education

Over-50s life insurance undersold due to lack of education

OneFamily research shows

Jaskeet Briah
clock 26 March 2024 • 1 min read
Covering with a Conscience

Covering with a Conscience

How do advisers effectively cover vulnerable consumers?

Jaskeet Briah
clock 26 March 2024 • 6 min read

Highlights

COVER Survey: Advisers damning of protection insurer service levels

COVER Survey: Advisers damning of protection insurer service levels

"It takes longer than ever to get underwriting terms"

John Brazier
clock 12 October 2023 • 5 min read
Online reviews trump price for young people selecting life and health cover

Online reviews trump price for young people selecting life and health cover

According to latest ReMark report

John Brazier
clock 11 October 2023 • 2 min read
ABI members with staff neurodiversity policy nearly doubles

ABI members with staff neurodiversity policy nearly doubles

Women within executive teams have grown to 32%

Jaskeet Briah
clock 10 October 2023 • 3 min read