"Claims rates could be even higher if all consumers were aware of the need to take extra care when making an application."
Aviva paid out more than £870 million in claims last year, equating to £2.4 million every day.
Broken down, the insurer paid out 98.9% of life insurance claims, 92.3% of critical illness claims and 92.6% of income protection claims.
Further findings from the research support Aviva’s call for more education amongst consumers to limit the possibility of any protection claim being rejected: a third (33%) of people say they have not always being entirely frank with insurers when applying for different types of insurance.
More than half of UK adults (53%) also say they do not bother to read the detail on any insurance policies they purchase. A similar proportion (54%) also said they only check their insurance policies’ terms and conditions when they need to claim, increasing the possibility of disappointment if a claim is made for something that is not covered by their particular policy, such as a specific illness.
Paul Brencher, Managing Director of Individual Protection at Aviva said: “It’s a common misconception that insurers don’t pay out on protection claims. Our research findings are alarming given our high, actual claims pay-out rates. Aviva is absolutely committed to paying out claims and alongside our strategic partners and independent financial advisers, we have been able to provide financial peace of mind to more than 23,000 individual protection customers and their families in 2016.
“However, claims rates could be even higher if all consumers were aware of the need to take extra care when making an application. Incorrect information, whether deliberate or accidental, and not checking the product details are some of the main reasons why a small proportion of protection claims cannot be paid. We hope that advisers can help us in preventing this, by stressing the importance of being as thorough and clear as possible when applying for insurance.
“As an industry, we must ensure the pervasive myth that insurers don’t pay out isn’t a barrier to families taking steps to protect themselves against an unexpected illness or a death. Publishing claims statistics is a good way for insurers to demonstrate that they put their money where their mouth is and to reassure customers that any future claim will be taken seriously.”
