Losing a loved one is an emotionally devastating and disorienting experience, and the administrative tasks that follow can feel overwhelming. At a moment when families most need financial stability, fast and easy life insurance payouts are crucially important.

In 2024, our members paid out over £4 billion, across 50,499 life insurance claims. Recognising the lifeline a quick claims process can provide, insurers continue to work hard to improve this, looking for opportunities to accelerate claims handling and better support grieving customers and those in vulnerable circumstances.

In this blog, we explore what insurers have already done to speed up bereavement claims, the challenges that still persist, and why advancements in data sharing could be the key that transforms outcomes for bereaved families.

Insurers endeavour to pay life insurance claims quickly and smoothly, recognising the urgency required in this circumstance. This is evidenced by the low FOS complaints – with only 345 Whole of Life complaints for the 2024/25 period and a 20% uphold rate.

However, analysis (November 2024) of Trustpilot reviews for life insurance claims showed that of the 12% that were negative.

• 26% were because of delays,
• 12% related to customer communication and
• 6% to the complexity of the claims process.

Insurers are acutely aware of the importance of communication, speed and simplicity in claims experience and have taken clear steps to improve outcomes.

In recent years, insurers have modernised systems and streamlined internal processes in an effort to reduce friction and delays for consumers. One of the clearest improvements has been the shift towards digital verification. Several firms now use electronic methods to verify deaths, avoiding the wait for paper certificates to arrive. Digital medical reporting tools have also been adopted, cutting the time needed to obtain medical information from several weeks to sometimes just days. These are good examples of how technological advances can make a real difference reshaping the early stages of the claims process and speeding up more complicated claims.

Insurers have also taken steps to reduce the burden the claims process can place on families by sourcing documents themselves rather than waiting for claimants to provide them. In some cases, this means applying for copies of death certificates directly, where they are already part of the public record, or proactively contacting coroners when an inquest might otherwise stall the process. While these interventions may sound simple, they can shave crucial time off a journey that previously depended heavily on next-of-kin navigating unfamiliar administrative systems at a time of grief.

A number of firms are now routinely fast-tracking simpler claims, such as certain over 50s policies, which can be paid within just one day. And in some cases, insurers are exploring minimum value thresholds that allow low risk claims to be paid immediately, removing additional steps for families who urgently need support. These approaches aren’t feasible for every product or every firm, but where insurers have the capability they are using it to push the boundaries of what is possible within a responsible risk framework.

Alongside operational improvements, insurers have made deliberate efforts to create a more supportive experience for bereaved customers. Many now assign a dedicated claims handler to guide families from start to finish, ensuring continuity and reducing the need to repeat sensitive information. Others have implemented faster response standards, with some firms operating on 24–48-hour turnaround times for key steps in the process. Customers increasingly receive regular updates, which ease anxiety and provide a sense of progress during a deeply uncertain time.

These developments reflect a clear industry appetite to provide better customer outcomes while maintaining empathy and clarity for customers in distressing circumstances. However, there are some challenges which can only be overcome through collaboration between insurers and other partners.

Even with these improvements, the claims process can still only begin once an insurer has the appropriate confirmation that a policyholder has died. In 2024, the FCA’s multi-firm review of life insurers’ bereavement claim processes identified difficulties getting the right documentation needed to process a claim as a key challenge impacting insurers’ ability to meet their service level agreements.  

Currently, confirmation of a death usually comes from bereaved families themselves, through a phone call or submitted form that may, understandably, come days or weeks after the event. When insurers try to verify the death through official channels, they often encounter slow or fragmented systems. Online death registers, while helpful, are not always complete or sufficiently up-to-date, and they usually don’t include causes of death, which are required for many claims. To get around this, some firms utilise specialist third parties to facilitate access to the right information, and while this approach has merit, it can be costly and is not possible for every insurer. 

This timing issue poses a difficult paradox. Insurers have the appetite to speed up claims and deliver better customer outcomes, yet the first step of the process, knowing about a claim event, is currently outside their control. From engagement with our members, industry estimates suggest that as many as 30% of delays can stem from this information gap alone. Closing this gap is a significant opportunity to improve outcomes.

Many of the barriers insurers face could be significantly improved with a technological data solution to bridge the gap between the death of the insured and insurer awareness. 

If an insurer could make appropriate preparations to support families rather than needing to ask for documents straightaway, the impact on consumer outcomes would be profound. Families would also no longer need to act as messengers across multiple institutions at a time of huge emotional strain.  

Crucially, a data solution would allow insurers to focus their efforts on the more complex elements of claims where personalised support is most needed, rather than losing valuable time on administrative verification. Smaller firms, which may struggle to invest in bespoke services from third-parties, would also benefit from a playing field that enhances competition and consistent service.  

The progress insurers have made to date should not be underestimated. Digital tools, proactive and empathetic communication, streamlined processes, and evolving technology have improved the experience for hundreds of thousands of families. But by adding straightforward, timely access to an official confirmation of death, the industry’s journey to deliver a faster, more efficient claims journey can accelerate, ensuring the best possible process and outcome for millions of bereaved customers. 

With continued collaboration between industry, regulators, and government, the bereavement claims process can become faster, smoother, and, above all, kinder. 

This ambition is shared by the regulator, who recognises both the progress made and the potential for further improvement through innovation.