Bright Grey paid out 95% of critical illness claims in the first six months of the year, with only 1.7% of claims declined for non-disclosure and 3% of claims not meeting the definition. The average pay out was nearly £90,000.
Protection advisory firm LifeSearch carried out analysis of 14 protection firms paying out on critical illness this year and said the average is now 90.5% across the industry.
Roger Edwards, proposition director at Bright Grey, said: “Having consistently built up our claims paid figures, we’re delighted to announce our strongest claims paid figures yet. Having such a high claims paid figure helps generate a massive confidence in Bright Grey with advisers and their clients. The fact we’re also leading the market, with an immature claims book, shows our strong focus on treating all our customers fairly.”
Protection specialist Kevin Carr said: “It’s great news that the percentage of claims being paid for critical illness cover is still rising. On average around nine in every 10 claims are now being paid, which demonstrates not only the need for cover, but also builds adviser and consumer trust in the product. As an industry we will probably never quite get to 100% of claims being paid, but the closer we get the better.”
And Matt Morris, senior policy adviser, at LifeSearch, added: “95% is the best rate in the industry and it shows that all the work the Association of British Insurers has been doing has helped the protection industry improve claim rates significantly.
“I also think the publication of claims stats across the industry, which we called for at LifeSearch a few years ago, has helped as well – it’s encouraging firms to improve their payout rates. The 1.7% non disclosure is also fantastic – that’s where the negative publicity for the industry has traditionally come from, so the fact that Bright Grey has got it so low is not only great for them, it’s great for the industry as a whole.”
Bright Grey said the youngest claimant was 22 years old and a third of claimants were 40 years old or under. 74% of critical illness claims were for cancer.