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Aegon pays out 93% of CI claims

Aegon paid out on 93 per cent of critical illness claims last year, and 94 per cent of life claims.

The insurer’s latest claims data shows the claims payout rate for CI is up 2 per cent from a year earlier, while the payour for life claims remained flat.

The value of critical illness claims paid out rose 37 per cent to £33.2m in 2013, from £24.3m in 2012.

More than half of declined CI claims in 2013 were due to the definition not being met, with the remainder of declines due to misrepresentation.

Five illnesses – cancer, heart attack, stroke, multiple sclerosis and benign brain tumour – accounted for 90 per cent of CI claims in 2013, with cancer alone accounting for 62 per cent.

Life claims rose 25 per cent in value in 2013, from £43.8m in 2012 to £54.9m in 2013.

Of the life claims declined in 2013, 93 per cent were due to misrepresentation and the remainder because of unmet conditions.

Cancer was the most common cause of death, accounting for 43 per cent of life claims. Cardiovascular conditions followed with 24 per cent.

Aegon UK protection director Dougy Grant says: “The research we carried out last year highlighted one of the key barriers to people buying protection was their lack of trust in providers to pay claims.

“Our figures continue to be strong and consistent. We continue to work closely with advisers and their clients to minimise the occurrences of misrepresentation.”

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