Skandia paid 89 per cent of critical illness claims in the year to June 2007, up one percent from the previous year.
Two per cent were declined due to non-disclosure and 9 per cent were declined because the claim had not met the definition.
Cancer remained the most commonly claimed for condition, accounting for 51 per cent of claims followed by heart attack with 13 per cent.
Fifty-eight per cent of female cancer claims were for breast cancer and 15 per cent of male cancer claims were for prostate cancer.
Skandia found the average claimant was 47 years old and policy had been in force for an average of 4.8 years before the claim was made.
Skandia head of protection marketing Ian Brown says: “It is vital that consumers have an understanding of the cover they are taking out. Over the years we have been working with advisers to ensure that the information we provide about our critical illness cover is clear, and so it is really encouraging to see a steady increase in the percentage of claims paid.”
Brown adds that the numbers also strongly demonstrate that advisers are doing a great job in emphasising to their clients the importance of disclosure and understanding the conditions covered.
He says: “This is all good news for the industry and helps to demonstrate to clients the quality protection that critical illness cover can offer. “
Skandia has paid a total of 2033 claims since it launched its critical illness contract in 1991 at a cost of £195 million.