Standard Life Critical Illness Claims for 2006 - declined claims fall significantly

Critical Illness claims statistics full year 2006

Key highlights: 360 claims paid worth a total value of £18.7 million, Marked reduction in declined claims, down to 7.5%, Average claim value £52,138, Largest claim paid £500,000, 64% of claimants were aged between 40 and 59, 33% of claimants were aged under 39, 3% of claims were made by people over 60, At the time of claim, 72% of policies were 'in-force' for more than four years, 53% of claimants were female and 47% were male.

The top five causes for claims during 2006 were: Cancer 60%, Heart attack 11%, Multiple Sclerosis 8%, Stroke 4%, Benign brain tumour 3%, Other 14%.

7.5% of claims were declined in 2006: 3.3% were declined because the claim did not meet policy definitions, 4.2% were declined due to non-disclosure.

For comparison, in 2005, Standard Life declined 18% of claims: 10% were declined because the claim did not meet policy definitions, 8% were declined due to non-disclosure.

Mick James, Protection Marketing Manager, Standard Life Assurance Limited, said: "There is often a stigma associated with Critical Illness plans that they don't pay out, yet we paid over 90% of our customer claims last year.

These people did not need the added worry of financial stress at a time when their health needs to be their top priority.

"While there has been a dramatic reduction in the number of declined claims in 2006, it is too early to say whether this is a trend.

Our work to improve the questions being asked on application forms and the additional warnings highlighting the need for full disclosure by customers is starting to reap benefits in fewer claims being declined." Standard Life has produced a report detailing the findings of the 2006 statistics for use by financial advisers with clients.

Go to www.adviserzone.com to access a copy.

Standard Life Claims Philosophy: Customer Service - our aim is to pay valid claims promptly and efficiently to help our customers in time of special need, Fairness - we will assess claims in a fair and consistent way.

To be fair to all policyholders, we will not pay invalid or fraudulent claims, Confidentiality - claims will be handled in a secure and confidential environment, Regulation and Compliance - we will comply with all appropriate legislation, Association of British Insurers code of practice, and will be bound by the decisions of the Financial Ombudsman.

Please click on the link at the end of the release to see Critical Illness Report 2006.

Ends For further information, please contact: Paul Keeble, Direct 020 7872 4481 / Mobile 0771 248 6387Lucy Coyle, Direct 0131 245 8958 / Mobile 0773 497 4252 Notes to Editors 1.

Where a claim has been declined because it does not meet policy definitions, it is because a customer has tried to claim for an illness or condition that is not covered by their policy.

This will include customers who have asked us whether their policy will cover a diagnosed medical condition in case they may qualify.

2.

Where a claim has been declined because of non-disclosure, it is because a customer has not made a full disclosure of their medical history at the time of application.

30 April 2007.

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