The number of paid CI claims in 2008 totalled 691, with 87.3 per cent being paid and 12.7 per cent declined.
Four per cent of declined claims was due to non-disclosure, while 8.7 per cent of claims were declined due to the definition not being met.
Over half of claims paid were for cancer, with the average paid claim reaching over £59,000. The largest claim paid in 2008 was £500,000, while the youngest claimant was aged 21.
Friends Provident head of protection Mark Jones says: “I am pleased to see a steady increase in the number of claims that we paid in 2008 either in full or proportionately. The industry is working hard to restore consumer confidence in insurance and belief in whether claims are paid. It is after all the reason that people purchase cover to protect themselves and their loved ones.”