The Association of British Insurers (ABI) this week revealed that nine in every ten claims made under a critical illness (CI) policy in 2010 was paid by the insurer.
Compare this to just three years ago, when 84% of claims were paid. That means, in 2007, 16% of claims were turned away by the provider. Or 1,900 claims out of a total of 11,900.
The situation was evern worse a decade or so ago, when the product was suffering a serious image problem.
Since then the market has improved significantly. But why?
1) ABI standard definitions
In 2007 the ABI began introducing standard definitions for many common conditions on critical illness policies.
It is widely felt by many in the industry that this is the main reason for the improvement in claims paid rates by insurers over recent years.
But there are other reasons too that may have flown under the radar.
2) Publishing claims figures
Insurers have been placed under the microscope to show they are as good as their word by demands to publish their claims figures.
However, these results and high claims ratios are now worn as a badge of honour by most providers to illustrate they do meet their promises when needed and has led to a tangible change of attitude throughout the market.
Peter Lurie, director at Proactive Medical and Life, said: "Clarity on CI definitions and the ability for clients to be a lot more transparent when making applications, the two go hand-in-hand.
"Whereas in the past a client may have been wondering if they were going to get [a claim] paid, more recently there's been a shout from the insurers side to want to pay claims because they want to be seen to be much more transparent."
3) Better underwriting
Underwriting claims has improved markedly.
While underwriting at application is more vigorous, this means once claims are made they are far more likely to be approved with little problem.
There is also often greater acceptance of clients with pre-existing conditions - although this will often mean a rating or exclusion for certain related conditions.
However, it means that a client does have the cover they need and if a claim is received, it is more likely to be accepted.
4) CI has matured
As Chris Hulme, director of Clayton Hulme Partnership, said: "The problem that we had 10-15 years ago was CI as concept was still relatively new.
"When you introduce something new, people are either relatively skeptical of it or they embrace it in open arms. I think it was more scepticism in the industry than embracing at that time - and it has been a steep learning curve since.
"The goal posts of learning have moved on constantly because we've got ever changing development in the conditions covered and advances in medical science that are changing those conditions in the first place," he added.
Hulme also noted that advisers have had to develop their medical knowledge further while providers have needed to communicate better with both clients and intermediaries on the issues raised.
5) Insurers want to pay claims
As one adviser told COVER, around 10-15 years ago insurers would often attempt to find any way possible to avoid paying a claim, including using vagaries in interpretation of policies and the definitions within them.
He cited one Multiple Sclerosis claim an insurer denied because, it said, "the disease had not affected her life" - something not addressed in the policy wording.
Eventually the claim was settled with interest, but it illustrated the problems present then.
"The fact more and more claims are successful is due to the pressure on companies to actually pay the claims, and the bad publicity that can come from not paying claims, such as ending up on [BBC's] Watchdog," he added.
