Aegon individual protection payouts are up 3% during 2010
AEGON UK today published its individual protection claims data which shows that it paid out 95 per cent of life claims and 91 per cent of critical illness claims in 2010. These latest figures are up from 92 per cent and 88 per cent respectively in 2009.
Over 2010 the number of claims increased by 5 per cent for life and 13 per cent for critical illness business .
Of the critical illness claims declined in 2010 46 per cent were due to deliberate non-disclosure, where the policyholder had failed to disclose important information, and 54 per cent were due to the definition of the critical illness not being met. Cancer continued to be the most common reason for a claim for Aegon on life and critical illness. For life claims 52 per cent were due to cancer and for critical illness cancer accounted for 61 per cent of claims.
In January 2008 the ABI introduced three high level categories of non-disclosure with the aim of improving customer clarity and certainty around paying claims for protection policies. The ABI guidelines of innocent (resulting in the claim being paid in full), negligent (applying a proportionate payment) and deliberate or without any care (resulting in a declined claim) have resulted in a considerable improvement in the number of successful claims across the industry.
Matt Rann, Head of Underwriting and Claims at AEGON said: “The ABI changes, together with improvements made to our procedures in handling claims, have led to far fewer claims being declined and we are hugely encouraged by this. AEGON’s improvements include the introduction of our tele-claims service, available across all our individual protection products, and amendments made to our application form.”
“We expect this trend of more successful claims continuing at AEGON. As our book of business matures, more claims start to arrive on older policies where the risk of non-disclosure is reduced.
“We are also looking at how we can improve our customers’ experience in the event that they have to make a claim. For AEGON, the customer experience at point of claim is equally important to the number of claims paid.”