Overall in 2014, Friends Life paid out over £265 million in individual protection claims to more than 7,000 customers and their families – the equivalent of £1 million every working day.
Cancer remains the largest cause of a claim but there was an increase in the number of heart attack, stroke and multiple sclerosis claims paid. Over £600,000 was also paid to customers under Friends Life unique diabetes cover.
Chris Pollard, Head of Underwriting, Claims & Customer Services for Individual Protection at Friends Life, said:
“There are several reasons why pay-outs for critical illness have outstripped life insurance but I think one thing it shows is the long history of market-leading focus that Friends Life has consistently delivered in the Critical Illness market. Critical Illness Cover offers a financial safety net meaning people can concentrate on getting better and not have to worry about paying the bills.”
In 2014, Friends Life paid 94% of adult critical illness claims (up from 91% in 2013) worth £122 million, plus £1.7 million paid to 88 families in child claims.
It also paid 99% of life claims and terminal illness claims worth £121 million, 86% of income protection claims (up from 85% in 2013) worth £20 million, and £550,000 for fracture claims.
Chris Pollard added:
“These figures show that Friends Life is committed to helping as many customers as possible when they need it most.
“The percentage of claims we’ve been able to pay out has increased for both critical illness and income protection and I see this as a very positive endorsement of our new business and underwriting processes as well as sign of how advisers are really making a difference in helping customers appreciate the need to carefully and fully complete application forms.”
