Article date: 21 April 2010
Aviva, the UK’s largest insurer, paid out 1,499 critical illness (CI) claims during 2009, totalling almost £118 million paid to people in need. This contributes to a total of £343 million paid to Aviva customers since 2007. The average amount paid out has increased to £79,000 in 2009, compared to £75,000 in 2008.
A further £151 million has been paid to the families of people who have died, or been diagnosed with a terminal illness in 2009. This takes the total Aviva has paid out to over £1 billion in critical illness and life insurance claims since 2006*.
Key statistics include:
- Total payouts for CI policies stood at almost £118 million. In total, 1,499 claims were paid in 2009
- The average amount paid out on critical illness claims by Aviva was £79,000 in 2009, up from £75,000 in 2008
- Aviva paid out on 91% of all claims in 2009
- Cancer remained by far the most common cause of claims, rising to 67% of all claims in 2009
- The number of claims declined in 2009 for non-disclosure of medical facts at the policy’s outset remained stable at 2%, down from 4% in 2007.
Richard Verdin, director of protection at Aviva, said: “Critical illness cover remains a crucially important solution for many. With nine in 10 claims being paid, it is time for providers and advisers to get back on the front foot to raise customer awareness. Collectively we owe it to customers to ensure people do realise the potential need and value of life insurance before it’s too late.
“47% of Britons don’t have critical illness or life protection and even more worryingly 75% of single parents have no protection, which has huge implications for their families. As product providers we must therefore do everything we can to support advisers so they in turn can talk confidently about the success and importance of these products with their clients.”
Aviva has a dedicated critical illness site containing customer and adviser case studies, and new material including the new 2009 claims brochure. This support for advisers is available at www.aviva.co.uk/adviser/.
Download Aviva's Critical illness claims report 2009 PDF (875KB) (Link is no longer active)
* Aviva has paid a total of £1,186,142,865 in life insurance and critical illness over the past four years.
- Aviva paid over 99% of all death claims in 2009.
All customers with an Aviva Critical Illness Policy benefit from up to £20,000 worth of Children's Critical Illness cover for their children. In 2009 Aviva paid out 51 child critical illness claims.
- The number of claims declined because the condition claimed for was not covered by the policy decreased to 6% in 2009, from 8% in 2008.
- During 2009 Aviva paid out a total of more than £300 million to people claiming through life insurance and critical illness cover. This includes:
- Critical illness claims: £117,981,919.72
- Child critical illness claims: £54,000.00
- Life insurance claims (death): £151,726,445.82
- Terminal illness claims: £32,461,902.00
- Total permanent disability: £5,613,868.00
For further information, please contact:
Telephone: 01904 452791 / 07800 690963
Notes to editors:
- Aviva is the world’s fifth largest* insurance group, serving 53 million customers across Europe, North America and Asia Pacific.
- Aviva's main business activities are long-term savings, fund management and general insurance, with worldwide total sales of £45.1 billion and funds under management of £379 billion at 31 December 2009.
- We are the largest insurance services provider in the UK and one of the leading providers of life and pensions products in Europe.
- Aviva’s life and pensions business in the UK has a total market share of 10.3%** and a leading position in its key markets of savings, protection and annuities.
- The Aviva media centre at www.aviva.com/media includes images, company and product information and a news release archive.
- For broadcast-standard video, please visit www.aviva.com/media/video.
- Follow us on twitter: www.twitter.com/avivaplc
* based on gross worldwide premiums at 31 December 2008
** Source: ABI data released March 2010