Zurich paid out 94 per cent of its critical illness policy claims in 2013, up from 90 per cent in 2012.
In its critical illness claim statistics for 2013, Zurich revealed it paid out 806 individual claims in 2013, with payments amounting to more than £65.2m. This compares to 744 in 2012 at a value of £59.9m.
The largest single claim paid out was for £1m.
Just 4.8 per cent of claims were declined due to the definition of the condition not being met, down from 7.9 per cent in 2012, while 1 per cent were declined because of non-disclosure - the same as for the previous year.
Of the top four conditions covered, 60 per cent of payments were made for cases of cancer, (which represented 62 per cent of claims in 2012 and 58 per cent in 2011).
The next most common condition for claims paid out was heart attack, which accounted for 13 per cent (unchanged from 2012); stroke was 9 per cent (up from 7 per cent in 2012); and multiple sclerosis was 5 per cent (compared with 4 per cent in 2012).
Rhys Dudding, European chief claims officer for Zurich, said: “There is a perception in the market that pay out rates for critical illness insurance claims are low.
“However, our claims record shows that the vast majority of claims are settled successfully and swiftly with the amounts awarded growing each year.
“The recently introduced cap on welfare spending is the latest signal we’re seeing in the shift in responsibility being passed from the state and employers back onto the individual.”
Roy McLoughlin, senior partner at adviser firm Master Adviser, said: “The industry continues to move in the welcome direction of all genuine claims being paid out and these excellent figures enhance this vision of utopia that all customers desire and demand.
“It is vital that we continue to relate this story on a constant basis.”
