Norwich Union, part of Aviva, paid out 813 critical illness (CI) claims during the first half of 2008, averaging just under £72,000. Nearly 94% of claims received were paid compared to 85% during the same period of 2007.
Norwich Union, part of Aviva, paid out 813 critical illness (CI) claims during the first half of 2008, averaging just under £72,000. Nearly 94% of claims received were paid compared to 85% during the same period of 2007.
The number of claims declined for non-disclosure of medical information fell to 1.5% (to end June 2007: 6.7%). This follows a series of initiatives undertaken by Norwich Union to help drive down non-disclosure1, alongside new ABI rules for the payment of claims effective from 1 January 2008.
Norwich Union paid out more than £58 million to policyholders who claimed on their Critical Illness policies over the last six months. Highlights include:
- Total payouts for CI policies increased to over £58 million, compared to over £52 million in the first half of 2007.
- Cancer remains the most common cause of claims at 60.1%.
- The number of children's CI claims paid increased to 42 from 15 during the first half of 2007.
- In total, 813 claims were paid out and the average payout was just under £72,000.
- The number of claims rejected for non-disclosure of medical facts at the policy's outset continued to fall to just 1.5% in 2008, from 6.8% at June 2007 and 4.17% for the full year.
During the first half of 2008 claims by illness type were as follows:
- Cancer 60.1%
- Heart attack 7.7%
- Multiple sclerosis 6.6%
- Stroke 6.9%
- Total permanent disability 5.9%
- Heart Surgery 5.1%
- Benign brain tumour 2.7%
- Other 5%
Louise Colley, head of protection products for Norwich Union, said: "Nobody wants to think about the prospect of becoming critically ill, but it happens to one-in-four of us. It's not until you speak to customers who have received a payment that you appreciate just what a difference it makes to them. These are people who have had their lives turned upside down yet remain incredibly positive. When we are able to relieve some of the financial pressure, it means they can focus on what's really important - themselves and their families.
"In recognising the needs of our customers we continue to lead the market in reducing the number of claims rejected for non-disclosure. We are actively tackling this issue, something that highlights our commitment to providing the peace of mind our customers demand."
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Press office contacts:
Holly Smart 07800 699218
Notes to editors:
1 Norwich Union has undertaken a series of initiatives to drive down non-disclosure including:
- Norwich Union runs a regular non-disclosure survey where it obtains medical evidence post application to assess whether non-disclosure has occurred. The survey is due to be run again this year.
- In 2007 Norwich Union ran a campaign providing existing customers with the opportunity to review their original forms and rectify any unintentional non-disclosure.
- Norwich Union encloses a flyer highlighting the risk of non-disclosure with all application forms. The A4 sheet reminds customers of the importance of answering all questions fully, truthfully and accurately.
- Norwich Union has an established helpline manned by underwriters that advisors can call during the application process. The "what-if?" line has received over 15,000 calls since the beginning of 2008 (2007: 9,000).
2 Case studies are available on request.
About Norwich Union
Norwich Union is one of the UK's biggest life insurers. It is a leading provider of life, pensions and investment products and one of the largest financial adviser (FA) providers. FAs provide over 70% of the company's long-term savings business in the UK.
Norwich Union has strategic alliances with building societies and other leading UK brand names including CIS and The Royal Bank of Scotland Group. Norwich Union's news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media
In the summer of 2009 Norwich Union will change its name to Aviva. Aviva is the world's fifth largest insurance group and operates in 27 countries. Aviva is to become the customer brand worldwide, thus enabling the company to compete even more effectively on a global scale for the benefit of customers, staff, business partners and shareholders.