Norwich Union critical illness statistics for 2008

Norwich Union, soon to be Aviva, paid out 1,625 critical illness (CI) claims during 2008, totalling almost £121 million paid to people in need. This represents an increase of 14% compared to 2007. The company also paid out a further £216 million to the families of loved ones who have died, or been diagnosed with a terminal illness.

Total payouts for CI policies increased to almost £121 million from £106 million in 2007. In total 1,625 claims were paid during 2008.

Norwich Union paid 90% of all claims, with the average claim at over £75,000.

The number of claims declined for non-disclosure of medical facts at the policy's outset fell to 2% for the full year, down from 4% in 2007 and broadly level with those announced for the half year 2008.

The number of claims declined as the condition claimed for was not covered by the policy was 8%.

Cancer remains the most common cause of claims at 63%.

Michael Whyte, chief underwriter for Norwich Union, said: "We have continued our hard work to tackle non-disclosure, which as a result, reduced to 2% in 2008, representing a 50% reduction when compared with 2007.

We are please with our progress on non-disclosure, yet are concerned that we have to tell some people that their claim was not going to be paid because their condition, or the severity of their condition, meant they were not covered by their policy. We are committed to ensuring that our customer's understand their purchase, however, it is up to the wholeindustry, both providers and advisers, to help customers understand the cover they buy. We are sharing this information because we want to raise awareness of this issue so that we can begin to tackle it as an industry as it is in our interests to ensure we do not have customers who end up disappointed at difficult times in their lives."