Zurich pays out 94% of CI claims in 2013 to total £65.2m

The insurer’s European chief claims officer, said payouts rose from 90 per cent in 2012, with payments amounting to more than £65.2m from 806 individual claims, up from £59.9m from 744 claims in 2012.

The largest single claim paid out was for £1m, while just 4.8 per cent of claims were declined due to the definition of the condition not being met.

This figure was down from 7.9 per cent in 2012, while 1 per cent of claimants were declined because of non-disclosure - the same percentage as 2012.

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Mr Dudding 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 are settled successfully and swiftly with the amounts awarded growing each year. We hope that this positive message encourages customers to think seriously about the need to protect themselves and their families.

“The recently introduced cap on welfare spending is the latest signal we are seeing in the shift in responsibility being passed from the state and employers, and back onto the individual.”

Claims data from all providers have not been published widely until recently. Although the Association of British Insurers began collating industry claims data in 2005, firms have only begun to publish in recent years.

Top four conditions covered:

• Cancer - 60 per cent of payments

• Heart attack - 13 per cent of claims

• Stroke - 9 per cent of claims

• Multiple sclerosis - 5 per cent of claims

Source: Zurich CI

Adviser view

Roy McLoughlin, senior partner at London-based Master Adviser, said: “The industry continues to move in a welcome direction of all genuine claims being paid out and these 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. Zurich has demonstrated that this most vital of protection products should be considered by all.”