Friends Provident Improve Customer Satisfaction for Critical Illness Cover
Article published on 11th May 2008
The FTSE 100 Index insurance and pensions company Friends Provident has stated that the number of claims for critical illness that have been declined on the basis of non-disclosure have decline by one third in 2007 compared to the previous year. This is because Friends Provident promised to still pay for a proportion of critical illness claims where unrelated non-disclosure had occurred.
Last year the company paid out £35,700,000 in critical illness claims, which amounts to a staggering 86.5% of claims for that year (an increase from 81.3% in 2006).
This means that the number of refusals for non-disclosure was down from 9.9% in 2006 to 6.5% in 2007. 7% of claims were still refused because definitions of illnesses and/or conditions as stipulated in policies were not matched, but then even this was an improvement of the previous year's refusal rate of 8.8%
The median age for claimants was in the mid forties, claims for cancer remained the highest proportion and the average remuneration was just under £60,000.
The company hopes that these improvements in the number of critical illness payouts will increase consumer confidence in insurance products, being both a benefit to the company and the wider industry.
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