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Critical approach paying off

Friends Provident paid out 86.5 per cent of critical-illness claims last year, up from 81.3 per cent tin 2006.

The company says that it declined a third less critical-illness claims due to non-disclosure, which it says is a result of paying a claims proportionately.

It declined 6.5 per cent of claims for non-disclosure, compared with 9.9 per cent in 2006 and declined 7 per cent because the policy definition was not met, down from 8.8 per cent last year.

Head of protection Mark Jones says that for the first time, fewer claims were declined for non-disclosure than for policy conditions not being met. He says: “I am delighted that the three-pronged approach that we have applied to our range of protection products – education, simplification and promoting a culture of fairness – is beginning to pay dividends”The improvement in the number of critical-illness claims paid will help increase consumer confidence in protection products.”

Cancer remained the most common reason for claims last year and the average age of a claimant was 44. The average critical-illness payout was £58,500 and the biggest claim paid was £750,000.


C&G withdraws SVR for new customers

Cheltenham & Gloucester has become the latest lender to withdraw its standard variable rate mortgage products from sale for new lending as of 10 May.

Portal points

The reporting on the Bates’ conference in last week’s issue surprised me. Andrew’s presentation, which we thank him for and which was arguably the highlight of the week, was indeed critical in some areas of the way that Money Portal manages its regulatory businesses. However, the article was unbalanced and missed two very important points.

In the interim

Paraphrasing the line from that great film Jaws: “Just when you thought it was safe to go into the water” seems very appropriate on hearing the news that you have to be working for the client to be an adviser.

FAMR – a familiar response

Pension specialist Fiona Tait takes a look at the Financial Advice Market Review and assesses the three areas where it suggests improvements can be made With significant budget changes ruled out (for a while anyway), the pension community briefly turned its attention to the FCA’s final report on its Financial Advice Market Review (FAMR), hoping […]


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