The protection industry pays out over £5.7bn in claims in 2019
The insurance industry paid out more than £5.7bn in protection claims in 2019. This was a marked increase of more than £470m compared to last year according to the Association of British Insurers ( ABI).
The percentage of claims paid in 2019 was 98.3%, the highest ever on record.
97.4% of life claims were paid in 2019. This equated to over £3bn in 2019, an increase of more than £19m compared to 2018.
The average individual life insurance claim paid was £77,535.28.
91.6% of critical illness claims were paid. This equated to £1.2 bn.
Cancer was the biggest single reason for individual critical illness claims.
The average individual claim paid was £67,573.2.
The main cause of income protection pay-outs were musculoskeletal, followed by mental health and cancer.
£60.5m was paid out in individual income protection claims for mental health with an average claim of £15,728.
£15.8m in pay-outs were made per day last year – £1.3m per day more than in 2018. Non-disclosure was the main reason for claims being declined.
Figures for the whole protection market
|Products||Number of claims paid**||Percentage of new claims paid||Total value paid (000s)**||Average value of claims paid**|
|Critical Illness||17,995||91.6%||£ 1,215,957||£ 67,573.28|
|Term Life||39,638||97.4%||£ 3,073,382||£ 77,535.28|
|Total Permanent Disability||474||71.7%||£ 32,345||£ 68,174.01|
|Whole of Life||229,197||99.99%||£ 794,106||£ 3,464.73|
|Income Protection||16,591*||87.2%||£ 669,397||£ 17,728.80|
|All Protection Products||303,896||98.3%||£ 5,785,187|
The ABI’s assistant director, head of protection and health, Roshani Hill said: “The biggest ever pay-out in protection insurance shows how vital this cover is for people who need support at a difficult time. The high number of claims paid, should give people confidence that their insurance provider will be there when they need them, helping families get back on their feet and providing valuable safety nets when the worst happens.
“During uncertain times, when insurers are doing what they can to support individuals, families and the NHS, having this confidence is more important than ever.” Cover magazine May 2020
For full information on protection claims paid in 2019 click below:
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 and 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.