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Friends Life CI payouts higher than life claims

by: Fiona Murphy
  • 09/04/2015
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Friends Life CI payouts higher than life claims
Friends Life has revealed that for the first time it paid out more in critical illness claims than for life insurance during 2014.

In 2014 it paid £122 million in critical illness claims – £1 million more than for life claims. 

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.

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 focus that Friends Life has consistently delivered in the CI market.”

Friends Life claim statistics for 2014:

  • 94% of adult critical illness claims paid (up from 91% in 2013) worth £122 million, plus £1.7 million paid to 88 families in child claims 
  • 99% of life claims and terminal illness claims paid worth £121 million 
  • 86% of income protection claims paid (up from 85% in 2013) worth £20 million 
  • £550,000 paid for fracture claims

Pollard added: “The percentage of claims we’ve been able to pay out has increased for both critical illness and income protection.

“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.”

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, the figures also showed. 

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