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Aegon pays 93% of critical illness claims

‘Big three’ illnesses accounted for 81% of CI claims

Aegon UK paid 93% of critical illness (CI) claims and 98% of life claims in 2018.

Statistics from the insurer reveal a total of £128.6m was paid in claims across all protection benefits, helping more than 1,552 families and businesses in 2018.

Life claims were paid to 742 families and businesses, representing payments amounting to £67.1m.

The average size of claim paid was £90,435 and the average age at claim was 62 years old. Cancer continued to be the most common cause of death for a life claim (47%), followed by heart-related conditions (21%).

In addition, 23% of life claims were paid early under Aegon’s terminal illness definition, with Aegon paying 95% of all terminal illness claims it received.

In total, £23m was paid for terminal illness claims in 2018, helping more than 200 families and businesses put their finances in order before the insured person’s death.

The average size of CI claims paid was £80,644 and the average age at claim was 50 years old.

The big three critical illnesses – cancer, heart attack and stroke – accounted for 81% of CI claims. Cancer alone accounted for 62% of CI claims in 2018, followed by heart attacks (12%) and strokes (7%).

Of the CI claims declined in 2018, nearly 5% were due to the definition not being met and the remaining 2% were due to misrepresentation.

Simon Jacobs, head of claims and underwriting at Aegon UK, said over the past eight years the insurer has worked hard to reduce incidents of misrepresentation and make sure that customers receive the best claims experience.

Aegon’s income protection claims stats reveal that last year it paid 93% of new claims received, and over £561,000 in regular monthly benefits. Cancer was the most common reason for IP claims (27%) in 2018.

“The low number of claims we continue to receive on this type of protection policy can impact the figures dramatically. With only 29 claims received last year, a single decline can make a big difference. The number of claims we’ve paid has remained static. However, while we don’t believe this data can provide any meaningful like-for-like comparison, we continue to share it for the sake of complete transparency for advisers and customers,” Jacobs said.