View more on these topics

NU pays 80m on critical cover but refuses 23% claims

Norwich Union paid out over 80m for claims on critical-illness policies last year, representing an increase of 23 per cent on claims paid in 2004.

The declinature rate was 23 per cent, with 12 per cent of claims turned down due to non-disclosure and 11 per cent due to policy conditions not being met.

The refusal rate showed a fall from the previous year when it was 26 per cent, with 13 per cent due to non -disclosure and 13 per cent to criteria not metThe company paid out on a total of 1,123 claims last year with an average payout of 73,000. At the point of claim, a typical policy had been in place for less than four years.

Cancer was the dominant cause of payout at 68 per cent, with 8 per cent for heart attacks, 6.9 per cent for multiple sclerosis and 5.6 per cent for strokes.

Almost nine times more men claimed for heart attacks than women while twice as many women claimed for MS.

Head of protection products Louise Colley says: “Norwich Union is striving to find new ways to reduce the levels of non-disclosure in policy documents.

“Earlier this year, we introduced a full disclosure factsheet in all our information packs further underlining the importance of completing forms carefully, accurately and completely.”


Bee says Government’s NPSS claims are a myth

Pension guru Steve Bee says Government claims that NPSS savers will receive the equivalent of 8 per cent pension contributions on their earnings are a myth because they cannot save anything from the first £5,000. Bee believes the calculations justify his fears of future widespread NPSS misselling. Under current proposals, NPSS savers will have to […]

Packager refuses to take incoming broker calls

Optoma Broker Solutions has closed to incoming calls from brokers until Wednesday.The packager says it will not accept calls until 9am on Wednesday morning. A message on its website says the bar was applied last Friday and will last until close of business tomorrow. Instead, it is asking brokers to use the online decision in […]

‘High exit fees unimportant if deal is good’

High exit fees are not a problem as long as the mortgage itself is good value, says John Charcol senior technical director Ray Boulger. He believes that a good deal will often mean an exit fee will not be triggered as the borrower will stay with the lender. Boulger’s comments come after new lender ING […]

Emerging views

By Frances HughesEmerging markets funds may lose out at the next Adv-iser Fund Index rebalancing as panellists respond to the prospect of an econ-omic slowdown and rising interest rates. There are currently eight emerging markets funds across the AFIs. The First State global emerging markets leaders, dimensional emerging markets and Jupiter emerging European opportunities funds […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm