Life claims

  • Aegon reported 21% more individual life claims in 2021 compared with 2020.
  • Overall they paid out 95% of life claims.
  • Covid-19 accounted for 20% of all life claims last year –  up from 14% in 2020 and 7% in 2019.
  • Cancer remained the most common cause of death, accounting for 34% of claims
  • Followed by respiratory-related claims (20%) which had tripled from 2019 and cardiovascular-related claims (19%).
  • The average age of an insured person at the time of claim was 63 years old.

Critical illness claims

  • Critical illness (CI), claims were down 3% in 2021 compared to 2020.
  • Aegon paid out on 93% of all individual CI claims received throughout the year.
  • Cancer was the top reason for claiming (61%).
  • Followed by heart attacks (13%) and strokes (8%).
  • The average age of an insured person at the time of claim was 51 years old.

The provider explained that the drop in CI claims could be due to the increased pressure on the NHS, which was spurred on by the pandemic. During the period, routine NHS services were suspended, such as breast, cervical and bowel cancer screenings, which restarted in late 2020 and 2021.

Income protection claims

  • Aegon paid out on 90% of all individual income protection claims received during 2021.
  • The average age of an insured person at the time of claim was 48 years old.
  • Cancer and mental health were the most common reasons for an income protection claim.
  • Aegon was unable to pay 10% of claims in 2021 due to misrepresentation. As they receive a very small number of income protection claims each year, a single decline can make a big difference to their figures.

Financial support

Helen Morris, head of underwriting and claims at Aegon, commented: “The general trend across the critical illness market is that overall CI claims remain down on pre-pandemic levels, with the reduction in medical screening and routine services playing a role in this.”

“We may begin to see a return to more typical seasonal trends as these medical services return to a more normal level,” she said.

Source: Cover Magazine 2022

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