Scots Prov, part of the Royal London Group, has reduced its declined CI claims from 6.4 per cent in the first half of 2007 to 1.9 per cent for the same period this year, 15 of the 703 CI claims paid by the provider.
The reduction is a result of increased awareness by advisers, the Association of British Insurers non-disclosure paper and the option to add or amend the underwriting information submitted online.
Scots Prov marketing director Alison Turner Holmes says: “Our improved application procedures have increased the number of claims we have paid under our CI plans and therefore helped so many customers at a time when they most need it.
“Now that we are happy with these figures we will look more in depth at the other reason that claims are not paid, definition not met.”
Turner Holmes say the firms figure for this category is around 10 per cent.
However she says: “We are really not sure we can reduce this whilst remaining fair to our customers and do not want to jeopardise our fairness in order to report low figures to the industry.”
The ABI assistant director of health and protection Nick Kirwan says: “For definition not met we’ve done a number of things. We’ve had standard definitions now for while and that’s certainly helped advisers get the hang of what is covered and what’s not. The last time we issued the Statement of Best Practice we put a lot of work into having clearer descriptions of the illnesses in the headings.”