Standard Life is the first insurer in the UK to reveal its declined claims statistics. The company's' figures show that they refused to pay out on one in five of their 442 critical illness claims between November 2003 and November 2004.
Fifty seven per cent of the eighty-eight declined claims were turned down because the policy definitions were not met. Thirty three per cent were also refused because of non-disclosure. The company declined 45 death claims on the grounds of non-disclosure.
Standard Life has said they took the decision to publicise the figures in the hope that they would educate both advisers and consumers.
Many advisers have welcomed the move, and have called on more providers to follow suit by also revealing their declined critical illness claim statistics, but the Association of British Insurers have no plans to enforce its members to follow Standard Life's lead.
Our view
A brave move by Standard.