Provider paid out on 93% of claims in 2011
AEGON UK today said that it paid 93% of all individual protection critical illness (CI) claims in 2011.
The figure marks an improvement from 91% in 2010 and is in line with the majority of other CI providers which typically pay out over 90% of claims, after the protection industry worked hard to reduce the proportion of declined claims due to non-disclosure.
Of the claims declined by AEGON in 2011, 81% were due to the definition of the illness not being met and 19% were due to non-disclosure of important information.
In total, AEGON UK paid out £28m in CI claims in 2011, a five per cent increase on what was paid in 2010, with an average payout of £82,567. The average age of a claimant was 46, and the average time a policy is in force before a claim is made is four years and nine months.
Cancer remains the most common reason for making a claim accounting for 66% of CI claims, up from 61% in 2010.