Aegon UK has published claims data showing more than £123m was paid for life, critical illness and income protection in 2016.
Some 98 per cent of all life claims were paid out in 2016 to 663 families and businesses, representing payments amounting to £64.4m - a 15 per cent increase on 2015’s figure.
The average size of claim paid was £100,661 and the average age at claim was 61-years-old, with cancer remaining the most common cause of death.
In addition, 95 per cent of critical illness claims were paid out last year (£35.4m), along with 85 per cent of income protection claims – figures that are broadly in line with 2015’s totals.
Of the critical illness claims declined in 2016, nearly 4 per cent were due to the definition not being met and the remaining 1 per cent were due to misrepresentation.
Openness and transparency are key for insurers to win hearts and minds.Michael AldridgeStephen Crosbie, protection director at Aegon UK, said: “In the eyes of our customers and their families, we are only as good as our last paid claim.
"Our reputation as a trusted provider comes down to whether we pay claims. This is core to our business and central to why people take out protection in the first place.
“We are extremely proud that we continue to pay such a high percentage of claims, however the customer experience at point of claim is just as important as the number of claims paid.
“In the last year, we’ve taken steps to improve our service and claims experience by reducing the time it takes to claim, introducing our supportive health and wellbeing service (provided by Health Assured) and using electronic death certificates to avoid delays.
"This is in addition to offering claimants the opportunity to use our tele-claims service to help make claiming as easy as possible.
“We always look to pay claims, putting customers and their needs at the heart of what we do. If they find themselves having to make a claim and deal with the emotional and financial upheaval a death or serious illness can bring, our experienced team of claims assessors are on hand to support them when it matters most.”
Michael Aldridge, innovation director at London and Country Mortgages, said: “They are clearly very positive figures.
"There is talk of some insurers not paying claims, and openness and transparency are key for insurers to win hearts and minds.”
Emma Thomson, life office relationship director at Lifesearch, said: “They are hugely positive figures in terms of what consumers think pay rates are going to be. Life and critical illness are particularly strong.
“Income protection at 85 per cent is not as high as Exeter and British Friendly, but what we don’t know is how old some of the claims are.
“Some of the established players will have old back books that have quite a lot of clients that don’t have the own-occupation definition, so that would affect the figures.”
simon.allin@ft.com
