Insurance companies Royal London and Scottish Widows paid out £631m and £199m respectively in protection claims over 2022.
Royal London paid out on average of £52m a month on protection claims. The total amount it paid out represents 99.4% of all claims to its almost 80,000 customers and their families.
Royal London stated that supporting customers “is about more than just the money though” and that is why it launched Helping Hand, a support package which offers “support and reassurance in difficult times”.
Over 2022, 1,067 customers used Helping Hand to help with such issues as orthopaedic (21%), cancer (20%), mental health (15%) and bereavement (11%).
Scottish Widows paid out 98% of protection claims and noted that 2022 is the fourth consecutive year that it has reached the 98% mark. This comes despite an 11% rise in illness claims compared to 2021.
Additionally, further analysis of Scottish Widows 2022 claims revealed that 99.4% of life claims and 93.3% of critical illness claims were paid out last year, representing 8,555 and 1,552 claims.
This converts to an average of just over £3.8m per week and almost £0.8m per working day paid out.
Royal London said that the cost-of-living-crisis has resulted in families paying out an extra £441 a month on average compared to this time last year. Also, that critical illness claims are dominated by cancer, heart attack and stroke and Royal London has established a new charity partnership with Cancer Research UK.
Royal London will donate £1.2m to Cancer Research UK to “help reduce the risks by tackling cancer inequalities, funding research into hard-to-treat cancers and initiatives to improve the pathway to early diagnosis, as well as supporting programmes that increase cancer awareness in communities”.
Royal London paid out over £182m in life insurance and terminal illness claims in 2022.
Scottish Widows agreed that cancer is still the most common reason for critical illness claims (63%) and life insurance (33%). It also found that the most common cancer claims in men are for prostate (22.4%) and in women is breast cancer (52.8%).
Royal London chief underwriter Craig Paterson said: “Royal London is always looking at ways to pay more protection claims and our track record is a strong endorsement of that. It’s important to remember that those making a claim come to us at a time when their lives have been turned upside down, so it’s rewarding to play a part in supporting them financially but also emotionally.
“It’s often overlooked that protection insurance is the foundation of all financial planning, helping to safeguard lifestyles and sustaining future plans which could be unachievable without it.”
Scottish Widows head of protection underwriting and claims strategy Scott Cadger said: “We know that 2022 was a tough year for many people, with the current cost of living pressures, as well as our health service still struggling with pandemic-related issues and often delayed diagnosis and treatments. That’s why I am proud to see that year-on-year we continue to deliver on our promise to protect and support our customers in their difficult moments.”
