Protection industry pays out £5.3bn in 2018
The insurance industry has paid out more than £5.3bn in protection claims in 2018, according to new data.
The latest figures from the Association of British Insurers (ABI) and Group Risk Development, showed the number of claims surpassed 200,000 for the first time and 97.6 per cent of those claims were paid.
Life insurance claims
The figures for the entire life protection market showed the average life insurance payout reached £81,000. Which is the highest average on record, plus more than 35,000 beneficiaries were supported following a bereavement.
For personal protection, where policies are chosen and taken out by the individual, the number of claims paid continued to rise with an increase of 16,000 year-on-year.
Income protection claims
By comparison, 88.1 per cent of income protection claims were paid.
The number of consumers claiming income protection doubled in 2018 which led to an increase of around £30m. Musculoskeletal conditions accounting for 30 per cent of claims.
Critical illness claims
91.6 per cent of all those who claimed on their critical illness policy received a payout. However, on total permanent disability claims the payout rate lagged behind at 70.2 per cent. For critical illness, cancer continued to be the highest cause of claims.
This was the same for group protection — where consumers receive insurance through their employer. Cancer was the main cause of claims across life, illness and income protection.
The group risk industry also saw a rise in the number of additional help and support services supplied with protection.
In 2018, nearly 5,600 employees were helped back to work after a period of sick leave and there were nearly 75,500 interactions with the services funded by group risk insurers.
Commenting on the overall findings, Tom Baigrie, member of the Protection Distributors group, said: “These numbers from the ABI are a clear demonstration of the good that the protection market does.
“That £5.3bn went to help someone bereaved, critically ill or so disabled they could not work. That is a huge amount of help arriving just when it is needed most across the nation.”
Information above sourced from: FT Adviser Magazine May 2019
If you are interested in arranging protection insurance it really can pay to take expert advice.
Whilst you are welcome to get a quote online but we would recommend you talk to one of our advisers.
Any quote that your adviser provides you with will take into account to your circumstances, your medical history, as well as your budget!
An online quote is just that – a quote – it isn’t a definite offer of cover. What really matters is the premium you are offered, after your application has been assessed.
Call Freephone 0800 644 4468 – Monday to Thursday from 09.00 to 19.00 and on Friday between 09.00 and 17.00.Call me back
Interested in related stories
- Read Jon’s moving story about his cancer diagnosis.
- The Benefits of an Index-Linked Life Insurance policy
- The Importance of putting your policy in Trust
- What questions will I be asked when I speak to an adviser about Life Insurance?
Links to third party websites exist for information only. We accept no responsibility or liability for the information contained on any such sites. The existence of a link to another website does not imply or express endorsement of its provider, products or services by us or St. James’s Place.