How many claims did Liverpool Victoria payout in 2020?

How many claims did Liverpool Victoria payout in 2020?

LV= paid out a total of nearly £118 million in individual protection claims throughout 2020, totalling 95% of its overall claims received.

Life Insurance

Nearly £72m in life insurance claims were paid over the course of last year.

The leading causes of claims for life assurance, including terminal illness claims, were:

  • Cancer (43%)
  • Heart-related (17%)
  • Covid-19 (11%)

Critical Illness Insurance

Liverpool Victoria, paid out £28m in critical illness claims, in 2020, with the highest payment being £500,000.

The leading causes of claims for critical illness were:

  • Cancer (60%)
  • Heart attack (10%)
  • Stroke (8%)

The insurer stated that 222 claims were made following a cancer diagnosis, with most claims coming from:

  • Breast (26%)
  • Prostate (11%)
  • Colon (9%)

Income Protection

Just under £14.6m in income protection claims were paid over the course of the year. Over £2.6m was also paid out in personal sick pay protection.

Reasons for claiming:

  • Musculoskeletal issues (22%)
  • Cancer (18%)
  • Mental Health (15%)

Mental health accounted for over half of all income protection claims, which represents £4.9m of new and existing income-related claims.

The insurer states 222 claims were made following a cancer diagnosis with breast (26%), prostate (11%) and colon (9%) accounting for most claims.

Financial support

Debbie Kennedy, Director of protection at Liverpool Victoria has commented: “The Covid-19 pandemic has been devastating. It is having a huge impact on people and we expect to see the effects on claims lasting for several years.

“Not only have people been affected directly by the virus, but millions of people around the UK are also struggling with mental health issues caused by isolation, coping with lockdown and financial worries.  The impact on the NHS and delays to appointments, screenings and treatment mean that serious conditions such as cancer could be diagnosed later when the illness becomes more advanced and difficult to treat.

The impact of Covid

Claims payouts for LV= which relate to Covid-19 totalled £6.5m throughout 2020. There were 619 death and 255 income-related claims. LV= states that Covid was responsible for 10% of all death claims during the year.

Rise in demand for additional benefits

The pandemic led to a rise in demand for daily benefits through remote medical services. LV= Doctor Services offers remote GP appointments which rose by 88%. Remote psychological services rose by a staggering 496%, and remote physiotherapy use increasing by 235%.

Liverpool Victoria say that the pandemic is likely to lead to a growth of mental health and cancer-related claims over the next two years, which have been caused by a backlog of screenings and delays to early treatment.

Debbie went on to say “Paying claims remains at the heart of what we do, but I am a strong believer that protection insurance is not only about paying claims; it’s about supporting customers when they are at their most vulnerable, and providing emotional and practical support when they need it.”

Source: Cover Magazine March 2021

For more about Liverpool Vic and their claims record click here.

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