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Aegon – Claims Up, Payments Up

Are the public right to be cynical about insurers’ willingness to pay out on critical illness and life policies? Andrew Sullivan reports

Well, not if the latest claims data published by Aegon UK are anything to go by. Aegon’s records show that the insurer paid out on 93% of CI (£33.2m) and 94% of life claims (£54.9m) during 2013. That’s 37% and 25% more, respectively,  than in 2012

“Research we carried out last year highlighted that one of the key barriers to people buying protection was their lack of trust in providers to pay claims,” protection director Dougy Grant observed. And yet these figures would suggest that this reluctance to take out cover is based on myth. Indeed, life payouts maintained their 2012 level while CI payouts increased by 2%.

Inevitably some claims are rejected, largely due to misrepresentation (44% of refused CI claims, 93% in life) or to definition not being met (56% and 7% respectively).

Five Critical Conditions

In terms of critical illness, 90% of claims arise from 5 key conditions –

  • ·       cancer
  • ·       heart attack
  • ·       stroke
  • ·       multiple sclerosis
  • ·       benign brain tumour

The most common causes of death in a life claim are cancer (43%) and cardiovascular conditions (24%). And the average age at claim for critical illness was a disturbingly low 48.

Given such payout figures, having inadequate CI and life cover would appear to be an economy that verges on the reckless.

 

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