The equivalent of £980,000 a day was paid in death claims when Coronavirus was at its peak according to the latest ABI data.
Insurers received 7,000 life insurance claims, and paid £90 million – the equivalent of £980,000 every day - to support the families of people who tragically died due to COVID-19 during the height of the crisis according to latest data issued today by the ABI.
The figures collected by the ABI highlight that between 1 March and 31 May this year:
- 6,689 claims were received under individual protection policies, with 351 claims under group schemes (also including a small number of critical illness and total permanent disability claims), with a total of £90 million paid. These figures equate to 77 claims worth £980,000 every day during the period during the period in which the data was collected.
- The vast majority of these claims -83% - have been paid so far. Across life insurance claims, these figures show that every life insurance claim has so far been accepted.
- The average payout on term insurance is expected to be £63,000, with an average payout of £137,000 on group policies
Roshani Hill, ABI’s Assistant Director, Head of Protection and Health, said;
Every COVID-19 death is a tragedy. While no amount of money can ever replace a life, insurers have been doing all that they can to help families cope financially through these unprecedented and distressing times.
We know that Coronavirus has long-lasting impacts, and protection insurers will continue to support families hit by this tragedy. No one knows what is round the corner, which is why protecting yourself and your family against the worst is vitally important.”
The UK insurance and long-term savings industry is also supporting many charities that are helping some of the people hardest hit by the crisis. Launched in May this year, the Covid-19 Support Fund has already seen £83.9 million having been pledged in voluntary contributions from firms across the sector.
The Fund works in partnership with the Charities Aid Foundation, and a network of partners, including the National Emergencies Trust and Business In the Community. The key aim is to provide immediate relief to charities affected by COVID-19, as well as a longer-term programme of support for people, communities, and issues where there is the greatest need, including:
- Community based charities that are under unprecedented strain
- Charities supporting the most vulnerable – in particular, families and children living in poverty and older people in isolation
- Initiatives to promote wellbeing and mental health across society