The research, produced by Lifesearch, shows that in 2009, 90.5 per cent of CI claims were paid on average, compared to 88.4 per cent the previous year.
Last year, an average of 1.9 per cent of claims were declined due to non-disclosure and 7.6 per cent were declined due to definition not met. This compares to 2.5 per cent and 9.1 per cent in 2008.
L&G paid the most claims at 93.6 per cent, followed by Axa and Bright Grey, who both paid 93 per cent. Friends Provident paid 92.6 per cent, Scottish Provident paid 91.3 per cent and Skandia and Zurich both paid 91 per cent. Of Skandia’s declined claims none were due to non-disclosure.
Royal Liver paid out the least number of claims at 86 per cent, followed by Aegon on 88 per cent.
Nine of the 12 providers listed either improved on or maintained the level of payouts they achieved in 2008.
Moneyfacts editor of investment life and pensions Richard Eagling says: “With non-disclosure having long been a contentious issue within the critical illness industry, it appears the efforts of providers and the Association of British Insurers to tackle the problem are finally being rewarded. The improvement in the claims statistics can only serve to improve confidence in the critical illness proposition.”