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ScotEq pays out 82% of CI claims

Aegon has released its rejected claim statistics for the first time, showing that it paid out on 72 per cent of critical-illness claims overall last year.

Across all product ranges, Aegon-owned Scottish Equitable Protect paid out on 82 per cent of claims in the year to September 30, with payouts tot-alling 22m.

Of the 18 per cent of the claims that ScotEq declined, 83 per cent were rejected on non-disclosure grounds, with the remainder rejected because clients’ illnesses did not meet policy definitions or a policy exclusion applied.

ScotEq Protect’s rejection rate compares with just 2 per cent by Skandia last year. ScotEq Protect says it would expect 65-80 per cent of CI claims to be paid out on its book, which is five years old, but says the firm, like other product prov-iders, is always reviewing its application form to improve transparency and cut the number of rejected claims.

The firm says it is splitting its book into new Scottish Equitable Protect and mature, comprising the business inherited through Guardian Financial Services.

Head of marketing Rod McKie says: “We hope that, by publishing both sets of fig- ures, we can help demonstrate the difference between a new book of business and a mature book. It is an important consideration and one that should be fully understood when comparing different companies’ facts and figures.”

ScotEq Protect says claims on mature books older than five years are not routinely checked for non-disclosure.

Guardian Financial Services paid out over 99 per cent of claims, totalling 501m. Less than 1 per cent of claims did not pay out, with most rejected for were for non-disclosure while the remainder were for claims outside the policy’s cover or a policy exclusion.


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