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Protection insurers pay out £13m per day in claims

Latest data shows record £4.7bn paid to households in 2016

Around £13m a day was paid out to support people who have protection insurance products such as life insurance, critical illness or income protection, latest figures from the Association of British Insurers (ABI) and Group Risk Development (GRiD) show.

In addition, virtually all protection insurance claims (97.3%) were paid in 2016.

The figures also show the number of life insurance claims paid hit 36,814 in 2016, with over 98% of claims paid out at an average value of £75,000.

Critical illness claims hit 15,464 with 92.2% of claims paid out at an average value of almost £68,000.

While there has been a small fall in the reported percentage of income protection claims paid, this is largely due to a change in the methodology around how this figure is measured. The ABI has changed the methodology in order to make our data more meaningful. Further analysis of this change can be found on the ABI website.

ABI Assistant Director, Head of Health and Protection, Raluca Boroianu‑Omura said:

“The fact that Protection insurance products pays out £13m a day shows how they can help to relieve the financial strain on families following a death, serious illness or injury. Insurers deliver on their promise to help individuals and households during a time of great distress, as demonstrated by the fact that over 97% of all protection claims were paid in 2016.

“Serious illness or injury can occur at any time and will inevitably cause strain on families financially, as well as personally. Products such as income protection, life insurance and critical illness cover improve the financial resilience of individuals, households and businesses and give peace of mind.

Importantly, protection products also relieve financial pressure on the welfare state and the NHS.”

Figures for the whole protection market (individual and group):

Products

Number of claims paid*

Percentage new claims paid

Percentage new claims declined

Total value paid (£000)*

Average value of claim paid (£)*

Critical Illness

15,464

92.2%

7.8%

1,047,435

67,733.74

Life

36,814

98.3%

1.7%

2,763,324

75,061.78

Total Permanent Disability

531

69.5%

30.5%

30,357

57,169.49

Whole of Life

85,860

99.99%

0.01%

407,696

4,748.38

Income Protection

28,023

84.7%

15.3%

499,316

17,818.08

All Protection Products

166,692

97.3%

2.7%

4,748,128

 

 

*Figures are for new claims, as well as all income protection claims in payment.

Notes for Editors

1. Enquiries to:
Malcolm Tarling                020 7216 7410    Mobile: 07776 147667
Lauren Gow                      020 7216 7327    Mobile: 07889 641702
Sarah Cordey                   020 7216 7375    Mobile: 07860 189071

2. The Association of British Insurers is the leading trade association for insurers and providers of long term savings. Our 250 members include most household names and specialist providers who contribute £12bn in taxes and manage investments of £1.6 trillion.

3. An ISDN line is available for broadcast

 More news and information from the ABI is available on our web site, www.abi.org.uk.


Last updated 08/05/2017