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.