Norwich Union paid out 86 per cent of critical illness claims in the first half of 2007 compared to 75 per cent in 2005 according to its latest Critical Insurance Claims Report.
NU says a series of initiatives to drive down non-disclosure, including a campaign to educate consumers about the importance of full disclosure on applications, was behind the increase.
Director of risk products Willie Mowatt says: “Non-disclosure is a huge concern throughout the insurance industry, which is why we are delighted to see more and more people helping to stamp out the problem.”
In July NU asked 5,000 existing protection policyholders to review their original application forms and supply any medical information they may have initially missed.
Mowatt says early indications from this pilot have shown an excellent response rate from existing customers providing extra information to ensure they have a valid policy which will pay out in the event of a legitimate claim.