Insurers have for the first time released official data on their payout rates for critical illness cover (CIC) and life insurance policies, showing that, on average, more than 90 per cent of claims are paid.

The data from the Association of British Insurers (ABI) marks the first time industry-wide statistics on claims for these products have been formally compiled. The products have suffered from a poor reputation in recent years due to controversial disputes over claims rejections, particularly for critical illness.