Protection insurance payouts – on the up
Support when you need it
Protection policies can help give you peace of mind by making sure you can meet financial commitments and know that your loved ones will not face hardship if you su er misfortune of a specified kind.
Last year, claims paid out under protection insurance totalled £6.8bn6, a second consecutive yearly high, with over £18.6m paid out every day in life insurance, income protection and critical illness claims. It was the third year in a row where the overall average individual payout increased, rising by 9% year-on-year to reach £14,994. The average critical illness claim payment was £67,500 and £61,944 for term assurance.
Claims pay out
In 2021, 98% of individual and group claims were paid, with ‘non-disclosure’ cited as the main reason for the 2% of rejected claims. This is when a customer fails to provide information about something that might have infl uenced the insurer’s decision to provide cover.
One emerging trend was a 40% rise in claims for musculoskeletal conditions last year, which could be linked to a higher number of people working from home in unsuitable conditions. There were 20% fewer claims relating to mental health in 2021, although mental health claims were still above their 2019 level.
More than just a number
Behind the key data is a vast number of families given support when they needed it most.
6 ABI and GRiD, 2022