Protection 

Skandia pays 96% of CI claims in 2013

Skandia paid out 96 per cent of its critical illness claims in 2013 after re-entering the market in April, the firm revealed.

According to Skandia, this represents a 1 per cent increase on the previous year for claims from its book of business which remained after it exited the market.

The average payment for a successful claim on a Skandia Protect CI policy in 2013 was £148,148, and more than three-quarters of claims made that year were for cancer, heart attack or stroke.

Skandia was unable to provide the total number or aggregate amount of claims paid.

Skandia Protect critical illness first entered the market in January 2001, then re-entered in April last year after a hiatus. At the time the firm claimed advisers were re-prioritising protection products following the Retail Distribution Review.

Upon re-entry Skandia launched a product covering 56 CI conditions. Since then it has introduced 13 partial payment conditions.

Of the claims which were rejected, Skandia said all were turned down due to definitions not being met, rather than non-disclosure.

The Old Mutual-owned insurance provider also paid out 100 per cent of its life assurance claims for the fourth consecutive year.

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