AIG Life - formerly Ageas - has paid out 90.2 per cent of critical illness and children’s critical illness protection claims last year, amounting to over £13.7m.
The average sum paid out to critical illness customers was £71,100 and the average age of claimants was 43 years old.
Cancer remains the most common cause of critical illness claims at 53 per cent, followed by children’s CI causes at 15 per cent, along with stroke and heart attack or related conditions at 6 per cent each.
The number of children’s CI cancer claims rose from 12 per cent of claims in 2013 and cancer was again the top cause for children’s CI claims last year, making up over 50 per cent of children’s critical illness claims.
Of the CI claims not paid in 2013, 4.6 per cent were declined because of non-disclosure and 5.6 per cent were declined for conditions not being met.
The insurer also announced that last year it paid out 92.2 per cent of life insurance claims – an increase of 7.8 percentage points on life insurance claims paid in 2013.
Steve Casey, head of marketing and propositions at AIG Life, said the figures are in keeping with the size and maturity of the firm’s portfolio.
“The percentage paid figures are higher than last year, which we predicted would be the case. Of greater importance, however, is to look under the headline figure and understand the causes of claim.
He pointed out that the percentage of claims paid for a children’s critical illness on last year’s figures demonstrates the importance of having a financial parachute in place should a child fall seriously ill.
“The emotional impact of a child’s illness on a family will likely be tough to endure but with some financial support the pressure can be eased a little.”
donia.o’loughlin@ft.com
